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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Forex News
June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.