The Central Bank of Iceland kept its seven-day term deposit rate at a record low of 0.75% during its February 2021 meeting. Policymakers said that the economic contraction in 2020 is now projected to be smaller than the Bank forecast in November, as domestic demand appears to have been stronger than it was previously assumed. For 2021, the outlook is also for domestic demand to grow more than previously projected, whereas the outlook for exports has deteriorated. The Committee also noted that inflation rose in January, measuring 4.3%, as the exchange rate pass-through from the depreciation of the króna still weighs heavily in imported goods prices. At the same time, domestic goods prices have risen as well, to some extent reflecting strong domestic demand. The outlook is for inflation to measure 3.9% in Q1/2021 but then fall relatively quickly over the course of the year, as there is still a sizeable slack in the economy and the króna has appreciated in recent months. source: Central Bank of Iceland
Interest Rate in Iceland averaged 7.02 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 March 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 2.50 percent in 2022, according to our econometric models.