Icelandic rate cuts still on the cards despite hawkish statement

The Central Bank of Iceland (CBI) kept monetary policy unchanged today, but struck a hawkish note in its accompanying statement. However, we believe that the downward effects of a further strong appreciation of the króna on import prices will more than offset rising domestic inflationary pressures, thus prompting the CBI to cut interest rates in the summer.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.