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2026-08-19

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Monetary Bulletin 2026/3

The Monetary Policy Committee raises the key interest rate to 8.00% in its statement dated 19 August 2026. The bulletin projects Iceland's GDP growth at 1.4% for 2026, a revision of 0.2 percentage points below the May forecast, with expectations of 1.9% in 2027 and 2.6% in 2028. Inflation is forecast to average 5.2% in the second quarter of 2026 and is expected to return to target in the first half of 2028.

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Iceland

Central Bank of Iceland

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