Iceland eases monetary policy by 25bp
MPC cuts rates as CPI inflation excluding housing heads towards target
The Central Bank of Iceland cut its policy rate by 25 basis points today (October 2) after inflation cooled to 5.4% in September.
It was the first change since the 50bp hike in August 2023 that took the rate to 9.25%. This was the bank’s fourteenth consecutive raise, a period of tightening in which the rate had increased by a total of 850bp.
“Although certain one-off items weigh heavily, the scope and frequency of price increases have tapered off”, the bank’s monetary policy committee (MPC) said
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