Iceland Keeps Rates on Hold as Inflation Pressure Endures

Iceland’s central bank kept borrowing costs unchanged for a second meeting as persistent inflation prevents officials from undertaking further monetary easing in the Atlantic nation.

Policymakers at Sedlabanki in Reykjavik kept the 7-day term deposit rate at 7.5% on Wednesday, in line with forecasts from Islandsbanki hf and Landsbankinn hf, among the nation’s largest lenders.