Posted on07 May 2009.
The Monetary Policy Committee has decided to lower the Central Bank of Iceland’s policy rate by 250 basis points to 13.0 percent. Overnight lending rates will also be lowered by 250 basis points. Other Central Bank interest rates will be lowered by 300 basis points.
(Central Bank of Iceland press statement)
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They can as well lower it to 1% makes no differnce.
This is just a “popular” action to make people happy, like this goberment has been doing since february, putting band aids here and there instead of actually makeing something to fix the situations permanently, but then again there is nothing they can do to fix this, so…
The only thing that is going to make a difference and fix the economy is reducing the indexed/over-inflated loans that people have. It doesn’t make since to take on a loan you will never be able to pay-off. Either the new government does something about this or they will be gone like Hardees’s administration. Icelanders are like volcanos, quieter but they can erupt in a huge way.
rest of the world is close to 0%…..Iceland down to 13%…long way to go yet….but it wont make any difference….the patient is DEAD….
this whole indexed business needs to end.
This large reduction in interest rates would normally reduce the value of the krona, so thank God the currency restrictions will limit the damage.
Policy rate decision, Thursday June 4.
I only see margin for 0.5%, and policy rate to 12.5%. Any additional cut would be pressure of the Employment market (ASÍ-SA), Government or to take risks and destroying all the advances with respect to inflation, and the future recovery. Margin is only 0.5%. Perhaps on July 2nd – next meeting -, following inflation numbers – June -, could have margin for an additional 0.5%, and policy rate at 12%.
On next minutes, we will know new policy rate in Iceland.
OK, Central Bank of Iceland says this:
“The Monetary Policy Committee has decided to lower the Central Bank of Iceland’s policy rate by 100 basis points to 12.0 percent. Overnight lending rates will also be lowered by 100 basis points. Other Central Bank interest rates will remain unchanged.”
They did it again!! People in charge in this country are idiots, they tie the rope more and more with every desition, like the news are saying in denmark, after todays cut, “iceland cutting the life line from IMF and other nations” But the again I dont belive any polititian or economist here is better skiled than a high school kid in other countries beeing class president. Kids in High schools and universities into politics in their local scjhools are better prepared than any polititian or economist here in Iceland.
And I mean kids in high schools and universities in other countries not here.
>“iceland cutting the life line from IMF and other nations”
Surely they don’t make these decisions without the IMF’s okay?
>Surely they don’t make these decisions without the IMF’s okay?
OMG, ignore me. I should at least look at the news headlines before I post:
GUARDIAN:
Iceland c.bank cuts rates again, defies IMF
BLOOMBERG:
Iceland Lowers Key Interest Rate to 12%, Defying IMF