Wednesday, February 2, 2011

Central Bank of Iceland Cuts Rate 25bps to 4.25%

The Central Bank of Iceland, or Sedlabanki, cut its main 7-day collateral lending rate by 25 basis points to 4.25% from 4.50%. The Bank also cut its other rates by 25 basis points: the deposit rate to 3.25% from 3.50% the maximum bid rate for 28-day certificates of deposit to 4.00% from 4.25%, and its overnight lending rate to 5.25% from 5.50%. Iceland recorded inflation of 1.8% in January 2011 which the Bank noted as "significantly below the inflation target of 2.5 percent".


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