Iceland's central bank raised its key interest rate sharply on Wednesday to contain the risk of wage-price spiral in the face of strong demand pressures and the upcoming wage negotiations.
The Monetary Policy Committee of the Central Bank of Iceland decided to raise the benchmark interest rate, which is the rate on seven-day term deposits, by 100 basis points to 7.50 percent.
The previous revision to the rate was in February, when the policy rate was hiked by 50 basis points. The interest rate has now reached its highest level since mid-2010.
Subscribe to continue reading the article.
This article is part of our premium content offering.Subscribe with a RTTNews subscription.
Subscribe NowAlready subscribed? Sign in
by Renju Jaya
For comments and feedback: contact editorial@rttnews.com