Icelandic Economic Weekly: 27 June 2022

27 June 2022 - Landsbankinn

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)

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