Iceland Interest Rate
Iceland maintained its key interest rate at 7.5% in October 2025, unchanged from August 2025. This stability reflects the Central Bank of Iceland's cautious monetary policy. Inflation remained above the 2.5% target at 4.1% in September 2025. Strong wage growth and inflation expectations above target prevent rate reduction. Future decisions depend on inflation nearing the target. Iceland's record low interest rate was 0.75% in November 2020 and record high was 9.25% in August 2023.
Historical Data (2015-2025)
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Iceland Interest Rate : Definition
The Interest Rate set by the Central Bank of Iceland is the benchmark cost of borrowing in the economy. It influences lending, spending, investment, inflation, and overall financial stability.