The MPC raised policy rates by 0.75 percentage points last week.
Last week’s highlights
The Monetary Policy Committee (MPC) of the Central Bank of Iceland raised policy rates by 0.75 percentage points last week. The Bank’s key interest rate, seven-day term deposits, are 2.75% after the rate hike. This was in line with our expectations. The rates are now the same as before the pandemic.
Concurrent with the rate decision, the CBI published its quarterly Monetary Bulletin.
A total of 68,000 foreign visitors departed via Keflavik Airport in January. This was approximately half of the number in January 2020, before the pandemic.
Registered unemployment was 5.2% in January compared to 4.9% in December. The increase between months was due to seasonal factors.
The week ahead
On Tuesday, the CBI will release payment intermediation in January and Registers Iceland will release the capital area housing price index for January.