The Central Bank of Iceland kept its seven-day term deposit rate at a record low of 0.75% during its March 2021 meeting. Policymakers said that the economic contraction in 2020 (-6.6%) was smaller than the Bank forecast in February (-7.7%), as economic activity in Q4 turned out stronger than projected, and the contraction in the first three quarters of the year was somewhat smaller than previous figures had indicated. Meantime, recent surveys and high-frequency indicators suggest a continuing recovery in 2021, although the outlook is still highly dependent on the evolution of the pandemic and the pace of vaccination. The Committee also noted that inflation slowed to 4.1% in February and it is expected to start to ease this spring, although the near-term outlook has probably deteriorated since February, in particular as global oil and commodity prices have risen recently. Furthermore, inflation expectations have risen slightly. source: Central Bank of Iceland
Interest Rate in Iceland averaged 6.93 percent from 1998 until 2021, reaching an all time high of 18 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 May of 2021.
Interest Rate in Iceland is expected to be 0.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Iceland to stand at 1.25 in 12 months time. In the long-term, the Iceland Interest Rate is projected to trend around 2.00 percent in 2022 and 2.50 percent in 2023, according to our econometric models.