Iceland’s central bank delivered a second straight jumbo cut in borrowing costs, citing a cooldown in the Atlantic economy as inflation continues to subside.
Policymakers at Sedlabanki in Reykjavik unanimously lowered the 7-day term deposit rate half a percentage point to 8.0% in their first decision of 2025 on Wednesday, matching a similar move in November. The decision was in line with the expectations of the north Atlantic nation’s largest banks, Islandsbanki hf and Landsbankinn hf.