The Central Bank of Iceland conducts quarterly lending surveys among the four commercial banks. In the surveys, the banks are asked for their assessment of developments in supply and demand for credit; the factors that, in their opinion, had a decisive impact on supply in the previous three months; and their expectations for the coming six months. The results of the most recent survey, conducted during the period 1 July-14 August 2025, are based on the average of the commercial banks’ responses.

Monetary Bulletin provides a quarterly overview of monetary developments and prospects, including an inflation forecast, which plays an important role in the formulation of monetary policy.

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to keep the Bank’s interest rates unchanged. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore remain 7.50%. All Committee members voted in favour of the decision.

A statement of the Monetary Policy Committee will be published on the Central Bank of Iceland website tomorrow, Wednesday 20 August 2025, at 08:30 hrs. The Bank’s Monetary Bulletin will be published at 08:35 hrs. At 9:30 hrs., a press conference on the statement and the contents of the Monetary Bulletin will be held.

The survey results suggest that market agents expect inflation to be slightly higher in coming quarters than they did in the May survey. According to the median response, market agents expect the Central Bank’s key interest rate to be unchanged at 7.5% for the remainder of the year.