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.

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Iceland Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-08-24 08:30 AM 5.5% 4.75% 5.75%
2022-10-05 08:30 AM 5.75% 5.5% 6.25%
2022-11-23 07:55 AM 6% 5.75% 6%


Related Last Previous Unit Reference
Interest Rate 6.00 6.00 percent Dec 2022
Interbank Rate 6.32 6.32 percent Jan 2023
Money Supply M1 819.48 802.11 ISK Billion Dec 2022
Money Supply M0 163.11 165.31 ISK Billion Dec 2022
Money Supply M2 1789.16 1770.84 ISK Billion Dec 2022
Money Supply M3 2548.53 2559.87 ISK Billion Dec 2022
Banks Balance Sheet 5100899.00 5173167.00 ISK Million Dec 2022
Foreign Exchange Reserves 837085.87 893433.37 ISK Million Dec 2022
Central Bank Balance Sheet 874026.00 938541.00 ISK Million Dec 2022

Iceland Interest Rate
In Iceland, the benchmark interest rate is set by the board of Governors of the Central Bank of Iceland (Seðlabanki Íslands). The main interest rate is the seven-day term deposit rate since May 2014. Previously the Bank’s key rate was the rate on its collateralised loans to financial institutions, but in the wake of the crisis the interest rate on the Bank’s deposits had greater influence on money market, as demand for Central Bank loans had been limited. Therefore the Bank’s key interest rate is the rate on seven-day term deposits.
Actual Previous Highest Lowest Dates Unit Frequency
6.00 6.00 18.00 0.75 1998 - 2022 percent Daily

News Stream
Iceland Raises Key Rate by 25bps
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%.
2022-11-23
Iceland Lifts Interest Rate by 25 bps to 5.75%
The Central Bank of Iceland raised its key interest rate, the rate on seven-day term deposits, by 25 bps to 5.75% on October 5th, the ninth consecutive rate increase in borrowing costs which now stand at their highest level since July 2016. Policymakers noted that headline inflation has fallen by 0.6 percentage points since the MPC’s August meeting to 9.3% in September but underlying inflation rose between meetings. Meanwhile, there are also signs that inflation expectations have begun to decline again, although they are still above the Bank’s inflation target.
2022-10-05
Iceland Hikes Interest Rate by 75bps to 5.50%
Iceland’s Central Bank raised its key interest by 75bps to 4.75% on August 24, 2022, an eighth consecutive increase in borrowing costs which now stand at their highest level since mid-2016. The Monetary Policy Committee also signaled further tightening in the future in order to tame inflation, which in the island state already advanced to 9.9%in July, and is forecast to peak at nearly 11% late this year, well above the 2.5% target. Meanwhile, policymakers see GDP growth of nearly 6% in 2022, some 1.3 percentage points above the May forecast, mainly due to more robust private consumption growth and a more rapid rebound in tourism than previously projected.
2022-08-24