Iceland Poised for Another Rate Hike as Soon as May After Pivot

Iceland’s central bank is likely to deploy another increase in borrowing costs at its May meeting after becoming the first western European monetary authority to tighten policy this year.

Governor Asgeir Jonsson on Wednesday signaled a readiness to act again after policymakers at Sedlabanki in Reykjavik lifted the 7-day term deposit rate a quarter percentage point to 7.50% earlier in the day.