Iceland Central Bank Keeps Key Rate At 14-Year High

(RTTNews) - Iceland's central bank left its key interest rate unchanged at its highest level since 2010 as inflation remains persistent.

The Monetary Policy Committee of the Central Bank of Iceland, chaired by Governor Asgeir Jonsson, decided to hold the rate on seven-day term deposits at 9.25 percent. Inflation as well as underlying inflation eased in February but the headline rate remained above the target. Inflation will remain persistent as inflation expectations also stayed above target, the bank said. Policymakers observed that economic activity continued to ease as the monetary stance is tight.

The bank said the near-term policy formulation will be determined by developments in economic activity, inflation and inflation expectations.