Improved inflation outlook gives Icelandic central bank room for manoeuvre
Long-term picture still shows inflation overshooting
The inflation outlook in Iceland has marginally improved over the past quarter, allowing the central bank to hike rates by less than previously planned, according to its latest monetary bulletin, published today (November 4).
The Central Bank of Iceland hiked its policy rate by 0.25% to 5.75% today, but said the stronger krona and "more favourable global price developments" meant it could raise rates more gradually than was "previously considered necessary".
Longer term, inflationary pressures
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