2026-05-20

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Monetary Bulletin 2026/2

The Central Bank of Iceland raised interest rates to 7.75% on 20 May 2026. The bulletin projects Iceland's 2026 GDP growth at 1.6%, with inflation expected to fall below 4% in mid-2027 and realign with the target at the beginning of 2028. It also outlines deteriorating global economic conditions due to conflict in the Persian Gulf and forecasts a wider economic slack in Iceland persisting over the forecast horizon.

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Iceland

Central Bank of Iceland

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