The Central Bank of Iceland raised its key interest rate by 25bps to 1.25% during its August 2021 meeting, to counteract high and persistent inflationary pressures. Policymakers said the economic outlook has improved further since the Bank’s May forecast, with updated GDP growth projections pointing to an expansion of 4% this year, some 0.9 percentage points above the May forecast. The improvement is driven mainly by tourist arrivals, which have increased more rapidly this summer than was previously expected. Unemployment has subsided more than previously forecast, although it remains high, and the slack in the economy has narrowed more quickly. The Committee also noted that headline inflation remained relatively high at 4.3% in July, although it has begun to ease, and it is expected to soften somewhat more slowly than projected earlier. Thus, inflation is seen above 4% through the year-end, before aligning with the central bank's 2.5% target in the Q3 of 2022. source: Central Bank of Iceland
Interest Rate in Iceland averaged 6.80 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 September of 2021.
Interest Rate in Iceland is expected to be 1.25 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 2.00 percent in 2022 and 2.50 percent in 2023, according to our econometric models.