Iceland makes surprise rate hike
The Central Bank of Iceland's rate-setting board unexpectedly decided on Thursday to raise its benchmark policy rate by 45 basis points to 13.75%.
Most economists had expected the central bank to hold rates. But the central bank said the decision reflects the board's view that the 2.5% inflation target "cannot be achieved except through a tighter monetary stance." Inflation is now 4.5%.
Growth has increased by more than expected and "significant uncertainty" surrounds wage developments.
The next
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