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Iceland's central bank cuts key interest rate to 4.75 percent
May 17, 2017 / 9:15 AM / 7 months ago

Iceland's central bank cuts key interest rate to 4.75 percent

COPENHAGEN, May 17 - Iceland’s central bank cut its key deposit rate to 4.75 percent from 5 percent on Wednesday as a stronger currency puts downward pressure on inflation.

“The outlook is for strong GDP growth this year, as in 2016, with growth for both years exceeding the February forecast,” the central bank said in a statement.

The deviation from the February forecast mainly stemmed from stronger-than-expected growth in tourism as well as more fiscal easing this year than was previously expected, the bank said.

The bank last cuts its key interest rate in December by 25 percentage points.

Reporting by Stine Jacobsen; Editing by Jacob Gronholt-Pedersen

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