Central Banks
Iceland Wage Restraint Needed to Slow Hikes, Central Banker Says
- Governor Asgeir Jonsson speaks in interview in Croatia
- Iceland’s real wages have outpaced rich peers since pandemic
Reykjavik
Photographer: Odd Andersen/AFP/Getty Images
This article is for subscribers only.
Iceland’s labor market parties must rein in wage growth to help slow interest rate hikes, according to the central banker in charge of western Europe’s most aggressive monetary tightening campaign.
“We are a country of consensus and so far we have not been able to reach consensus with the labor market on minimal wage growth,” central bank Governor Asgeir Jonsson said on Friday in an interview in Dubrovnik, Croatia. “The future rate hikes depend on whether we will be able to reach a consensus on the labor market.”