Iceland's central bank slashed its key interest rate and the economic growth forecast for this year on Wednesday, citing weaker tourism business and a fall in marine product exports.
The Monetary Policy Committee, or MPC, decided to lower the rate on seven-day term deposits by 0.5 percentage points to 4 percent, the Central Bank of Iceland or Sedlabanki said.
The bank had held the rate steady in the previous four policy sessions after hiking it by a quarter-basis points in November.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.