The Central Bank of Iceland raises its interest rates (and submitted a report to the Government)
The Board of Governors of the Central Bank of Iceland has decided to raise the Bank’s policy interest rate by 0.5 percentage points as of February 22, 2005, from 8.25% to 8.75%. The Bank’s other interest rates will increase by 0.5 percentage points as of February 21.
The Central Bank today submitted a report to the Government of Iceland after inflation in February moved beyond the tolerance limits as defined in the joint declaration of the Government and the Bank from March 2001. Published on the Central Bank’s website, the report includes the Board of Governor’s arguments supporting the decision to raise the policy interest rate now.
For further information, contact Birgir Ísleifur Gunnarsson, Chairman of the Board of Governors of the Central Bank of Iceland, tel. (+354) 569-9600.
Report to the Government on inflation beyond the tolerance limit (pdf-100kb)
February 18, 2005