The Central Bank of Iceland announced this morning that it would raise its policy interest rate by 0.5 percentage points to 15.5%.
Previously Iceland had unexpectedly raised its policy rate by 1.25 percentage points on 25 March in reaction to a worsening inflation outlook due to the depreciation of the Icelandic crown (ISK) and increased inflation.
The Icelandic Central Bank has followed up last month’s rate hike with a further increase today, thus showing its determination to hit the country´s inflation target of 2.5%.
More information on the interest rate rise in Iceland can be found at www.sedlabanki.is
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