Iceland raises rates by 50bp and warns more will follow
Central bank increases lending and deposit rates to 5.75% and 5%
The Central Bank of Iceland raised interest rates by 50 basis points today (June 10) in response to "significantly larger" wage increases than expected, and signalled further hikes are likely in the coming months.
The monetary policy committee (MPC) increased its seven-day lending and deposit rates to 5.75% and 5% respectively, and laid the foundation for additional hikes at its next meeting.
"It seems apparent that a sizeable rate increase will be necessary in August, followed by further rate
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