02 December 2005

The Central Bank of Iceland raises its policy interest rate

The Board of Governors of the Central Bank of Iceland has decided to raise the Bank’s policy interest rate by 0.25 percentage points to 10.5% as of December 6, 2005. Other Central Bank interest rates will be raised by 0.25 percentage points as well effective as of December 11, 2005. In its quarterly Monetary Bulletin, which is published on the Bank’s website today, the Bank presents the arguments in support of raising the policy rate now.

For further information contact Mr. David Oddsson, Chairman of the Board of Governors of the Central Bank of Iceland, tel. +354 569-9615.

No. 38/2005
December 2, 2005