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Iceland's Central Bank Keeps Rates Unchanged on Uncertain Inflation Outlook

BY MT Newswires | ECONOMIC | 08/20/25 07:29 AM EDT

07:29 AM EDT, 08/20/2025 (MT Newswires) -- Iceland's central bank (CBI) Wednesday said its Monetary Policy Committee (MPC) kept interest rates unchanged, including the key rate on seven-day term deposits at 7.50%.

All MPC members voted in favor of the decision, noted the central bank in its policy statement.

Headline inflation measured 4% in July, after falling by 0.2 percentage point from the previous month. According to the CBI's newly published forecast, it will rise again in the months ahead but then start to ease in early 2026.

"The inflation outlook remains highly uncertain, however," wrote the central bank in the policy statement.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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