The MPC raised policy rates by 0.5 percentage points last week.
Last week’s highlights
- The MPC raised policy rates by 0.5 percentage points.
- Concurrent with the policy rate decision, the CBI published its quarterly Monetary Bulletin.
- Arion Bank’s euro-denominated covered bonds were listed as eligible collateral in transactions with the European Central Bank.
- The housing price index for the capital region increased by 1.4% MoM in October, bringing the YoY increase to 17.1%.
- Landsvirkjun released results for Q3.
The week ahead
- On Thursday, Statistics Iceland releases CPI numbers for November. We expect a 0.5% increase between months and headline inflation to increase from 4.5% to 5.0%.