11.12.201908:12:00UTC+00Iceland Leaves Key Rate Unchanged At Record Low

Iceland's central bank left its key interest rate unchanged at a record low on Wednesday, after cutting it for five successive sessions.

The Monetary Policy Committee of the Central Bank of Iceland on Wednesday decided to leave its key interest rate unchanged at 3.00 percent.

The bank had reduced the rate by 1.5 percentage points since the spring.

Although the economy grew 0.2 percent in the first nine months of the year, which was slightly more than the previous forecast, overall developments were in line with bank's projections, the bank noted.

Further, inflation outlook was broadly unchanged since the previous meeting and inflation expectations were at target by most measures. "The monetary stance has therefore remained largely unchanged between MPC meetings," the bank said.

The MPC said near-term policy decisions will depend on the interaction between developments in economic activity, on the one hand, and inflation and inflation expectations, on the other.