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Statement of the Monetary Policy Committee
The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to raise the Bank’s interest rates by 0.25 percentage points. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore be 1%. The economic recovery in H2/2020 was stronger than previously assumed. According to the Central Bank’s new macroeconomic forecast, published in the May issue of Monetary Bulletin, the outlook is for just over 3% GDP growth this year and more than 5% growth in 2022. The outlook has improved since the Bank’s last forecast, owing largely to signs of a stronger recovery of domestic ... (full story)