COPENHAGEN Feb 8 Iceland's central bank kept
its key deposit rate unchanged at 5.0 percent on Wednesday and
expects economic growth to remain rapid in 2017.
The central bank estimates 2016 economic growth at 6
percent, above the 5 percent forecast in November.
It expects growth to "remain rapid," at 5.33 percent in 2017
and 2.5 to 3 percent in 2018 and 2019.
"Rapid growth in economic activity and clear signs of
growing demand pressures in the economy call for a tight
monetary stance to ensure medium-term price stability," the
central bank said in a statement.
The central bank cut its key deposit rate in December by
0.25 percentage points, in a bid to weaken Iceland's currency,
The inflation outlook is unlikely to have changed from the
previous forecast by the central bank in August, it said.
(Reporting by Jacob Gronholt-Pedersen, editing by Larry King)