Iceland's central bank slashed its key interest rate and lowered the reserve requirement for banks in a surprise move on Wednesday as the economic outlook deteriorates amid the coronavirus, or Covid-19, outbreak.
The Monetary Policy Committee decided to cut the key interest rate, which is the seven-day term deposit rate, by 50 basis points to 2.25 percent, the Central Bank of Iceland said in a statement. The previous change in the rate was a 25 basis point cut in February. Policymakers also decided to lower the average reserve requirement for banks to zero from 1 percent. The fixed reserve requirement was maintained at 1 percent.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.