The Central Bank of Iceland slashed its rate on seven-day term deposits by 75bps to 1.0 percent during its May meeting, and stopped offering 30-day term deposits aiming to boost liquidity in circulation and further strengthen monetary policy transmission. The central bank sees the economy contracting by 8 percent this year amid an expected plunge in tourist visits due to the coronavirus crisis, and the unemployment rate to reach 12 percent in the third quarter. Still, policymakers noted that economic developments will depend on the path the pandemic takes and the progress made in unwinding the associated public health measures. The MPC also pledged to use the tools at its disposal to support the domestic economy and ensure that the more accommodative monetary stance is transmitted normally to households and businesses.
Interest Rate in Iceland averaged 7.23 percent from 1998 until 2020, reaching an all time high of 18 percent in October of 2008 and a record low of 1 percent in May 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 2020. source: Central Bank of Iceland
Interest Rate in Iceland is expected to be 1.00 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 1.00 in 12 months time. In the long-term, the Iceland Interest Rate is projected to trend around 1.75 percent in 2021 and 2.50 percent in 2022, according to our econometric models.