Iceland­ic Eco­nom­ic Weekly: 27 June 2022

The MPC raised the policy rate by 1 percentage point last week. The CBI’s key interest rate (seven-day term deposits) is now 4.75%, the highest in 5 years.

Last week’s highlights

• The unemployment rate decreased to 3.9% in May, from 4.5% in April.
• The housing price index for the capital region increased by 3% MoM in May.
• The MPC raised the policy rate by 1 percentage point last week. The CBI’s key interest rate (seven-day term deposits) is now 4.75%. The MPC has raised interest rates by a total of 4 percentage points since it began the current rate hike cycle in May of last year.
• Statistics Iceland published the monthly wage index for May, which rose by 0.4%.

The week ahead

• On Wednesday, Statistics Iceland will release CPI numbers for June.
• On Thursday the CBI will publish its quarterly Economic Indicators and Hagar will publish Q2 earnings.

Markets and Economic Overview

Icelandic Economic Weekly: 27 June 2022 (PDF)