Iceland’s central bank Governor Asgeir Jonsson signaled borrowing costs have likely peaked after the third interest-rate hike this year as persistent inflation has led to unexpectedly few second-round effects.
Policymakers at Sedlabanki in Reykjavik on Wednesday lifted the 7-day term deposit rate a quarter percentage point to 8.0%, the highest level in more than a year. The decision was in line with forecasts from the market.