Central Bank Interest Rate Changes in Moldova and Iceland – Currency Thoughts
Central Bank Interest Rate Changes in Moldova and Iceland
February 5, 2025
The National Bank of Moldova‘s policy rate was raised by 90 basis points today to 6.5%, its highest level since June 2023. Today’s is the second increase this year following one of 30 basis points in January. The rate had been at 3.6% from May 2024 previously. CPI inflation doubled to 7.0% by December from a low of 3.3% last May.
The Central bank of Iceland‘s key interest rate was cut 50 basis points today to 8.0%, its lowest level since May 2023 and down from a peak of 9.25% maintained from August 2023 until an initial easing last October. Icelandic consumer price inflation last month of 4.6% was at a 39-month low and down from 10.2% in February 2023. Although continuing disinflation is projected, the target of 2.5% shows the need to exit the restrictive monetary stance in a carefully slow manner.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Iceland, National Bank of Moldova
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