The Central Bank of Iceland raised its key interest rate, the rate on seven-day term deposits, by 25bps to 6% in its November 2022 meeting. It was the 10th consecutive interest rate increase, lifting borrowing costs to their highest since April 2014, as policymakers extend efforts to curb price inflation in the Icelandic economy. The Monetary Policy Committee noted that underlying inflation has continued to rise and that inflation expectations have become less firmly anchored to the target, while the krona has depreciated since their last meeting. Members forecast inflation in Iceland to average 9.4% in the fourth quarter and begin to gradually ease in 2023 to end next year at 4.5%. In the meantime, the growth outlook has improved and GDP growth forecasts for 2023 were revised upwards to 2.8% from August’s projections of 1.8%. source: Central Bank of Iceland
Interest Rate in Iceland averaged 6.61 percent from 1998 until 2022, reaching an all time high of 18.00 percent in October of 2008 and a record low of 0.75 percent in November of 2020. This page provides - Iceland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Iceland Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on January of 2023.
Interest Rate in Iceland is expected to be 6.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland Interest Rate is projected to trend around 6.00 percent in 2023 and 4.00 percent in 2024, according to our econometric models.