Policy rate in Iceland

Banco Central de Islandia · Mensual

7.75% (Jul-26) ABS · % · Mensual · CSV

About this indicator

Source	Banco Central de Islandia
Frequency	Mensual
Release	En las fechas de las reuniones de política monetaria del banco central.
What it is	The policy rate is the benchmark interest rate set by the Central Bank of Iceland (Seðlabanki Íslands) to conduct monetary policy. It is the reference price of money in the Icelandic economy and anchors all other rates.
How it's calculated	It is not a statistic: the Central Bank of Iceland's Monetary Policy Committee sets it at its scheduled meetings, guided by its price-stability objective and the state of the economy. The chosen level stays in force until the next decision.
Market implications	Changes in the rate feed through to market rates, credit, the Icelandic króna (ISK) exchange rate and, via these, to spending and prices. A larger-than-expected hike tends to support the króna, while a cut tends to weaken it.
Limitations	It is a discretionary decision whose effects on the economy work with long and variable lags. The rate changes only on meeting dates, so the series simply repeats the last level between decisions.