Central Banks
Iceland’s Central Bank Chief Signals No Rush to Start Easing
- Asgeir Jonsson speaks in interview after keeping rate at 9.25%
- High inflation expectations are ‘the biggest’ worry: Jonsson
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Iceland’s central bank governor said it was too early to begin easing the most aggressive monetary policy in western Europe, citing worries that a recent wage deal could fall short in terms of taming inflation expectations.
The monetary authorities in the north Atlantic nation, the first in the rich world to start raising borrowing costs after the pandemic, could still pioneer interest-rate cuts in that peer group, Asgeir Jonsson said Wednesday in an interview following the bank’s decision to keep the benchmark rate unchanged at 9.25%.