News

We forecast an unchanged policy rate on 7 November

Íslandsbanki Research has published a new policy rate forecast.

Summary:

  • We forecast an unchanged policy rate on 7 November
  • Deteriorating inflation outlook versus a deteriorating economic outlook
  • Increased uncertainty about the policy rate decision; rate hike considerably likely before the year-end 
  • Uncertainty about the need for a tight policy due to wage settlements could prove protracted
  • Developments in long-term inflation expectations a key factor in upcoming policy rate developments
  • Recalibration of capital flow management measure timely

Policy rate forecast November 2018

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