Booming Iceland Needs to Sober Up, Governor Warns After Rate Cut
- Gudmundsson sees risks of over-heating amid economic boom
- Says end of capital controls to proceed speedily next year
Mar Gudmundsson, governor of Iceland's central bank.
Photographer: Arnaldur Halldorsson/BloombergThis article is for subscribers only.
Iceland will need to pursue a more sober fiscal policy if it wants to avoid a hangover from its latest high-growth binge, according to the governor of the country’s central bank.
"It’s like when you’re at a party and you need to slow it down a bit,” Mar Gudmundsson said in an interview Wednesday after he cut rates for a second time in four months.