刚刚！降息25基点

Core Viewpoint - Iceland's central bank unexpectedly lowered its interest rate to 7.25%, the lowest in over two years, due to a slowdown in economic growth and easing inflation concerns [2][5]. Economic Conditions - The central bank's monetary policy committee unanimously agreed to reduce the 7-day deposit rate by 25 basis points to 7.25%. Market participants had generally expected the rate to remain unchanged [5]. - The central bank anticipates that inflation will decline faster than previously assumed, with signs of a turning point in economic activity becoming more evident [5][7]. - The economy is expected to contract again in the third quarter following a decline in the second quarter, with a projected annual growth rate of 0.9% for this year and 1.6% for 2026, significantly lower than earlier forecasts [6]. Inflation and Monetary Policy - Despite a cumulative rate cut of 175 basis points since October of the previous year, inflation accelerated to 4.3% in October, the highest level since January [6][7]. - The central bank's survey indicates that market participants expect average inflation to remain around 3% over the next 5 to 10 years [6]. - The central bank noted that the turmoil in the mortgage market, exacerbated by a recent court ruling halting some housing loans, could tighten borrowing conditions and financial environments further [5][7]. Future Outlook - The decision to lower rates was partly to counteract the tightening effects on household borrowing conditions and the financial environment [7]. - Future rate cuts will depend on clear signals of inflation moving towards the central bank's target of 2.5% [8].