Iceland Maintains Western Europe’s Highest Rate

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Iceland Maintains Western Europe’s Highest Rate

Iceland’s Central Bank left its interest rate unchanged at 6 percent for a sixth consecutive meeting when its Monetary Policy Committee (MPC) met last week. The seven-day collateral lending rate is the highest in western Europe, bloomberg.com reports.

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Iceland's Central Bank. Photo copyright Icelandic Photo Agency.

The Central Bank credits, in part, its foreign exchange market strategy for reduced exchange rate fluctuations. The ISK has remained relatively stable, increasing 8.7 percent since January, but it has taken longer than expected for inflation, currently 3.8 percent, to decrease, according to a statement from the bank.

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