Iceland's central bank slashed its key interest rate further to a new record low and the countercyclical capital buffer was lowered to zero to improve credit supply, as the economic outlook deteriorates further on the outbreak of coronavirus, or Covid-19.
The Monetary Policy Committee of the Central Bank of Iceland, on Wednesday, decided to cut the key interest rate, which is the seven-day term deposit rate, by 50 basis points to 1.75 percent.
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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.