Thursday, March 17, 2011

Iceland Holds Policy Rate at 4.25%

The Central Bank of Iceland held its benchmark 7-day collateralized lending rate at 4.25%, pausing after a string of interest rate cuts. The bank noted that it expects inflation to remain near target in the near term. Iceland reported inflation of 1.9% in February, compared to 1.8% in January. The Bank also said "With the prospect that inflation will remain near target and with interest rates at a historically low level, the direction of future policy moves remains uncertain,".


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