JAKARTA (dpa-AFX) - Iceland's central bank maintained its key interest rate, on Wednesday, after lowering it by a quarter point in October.
The Monetary Policy Committee of the Central Bank of Iceland decided to hold the seven-day term deposits rate at 4.25 percent. The bank had lowered the rate by a quarter point in October.
The bank said GDP growth will slow more than it projected in August. Due to the slowdown in export growth, the bank forecast economic growth to ease to 3.7 percent this year from 7.4 percent in 2016.
Inflation is forecast to align with the target in mid-2018 and stay close to target for the remainder of the forecast horizon.
However, significant demand pressures remain, which calls for a tight monetary stance so as to ensure medium-term price stability, the bank said.
Policymakers said the current monetary stance appears sufficient at present to keep inflation broadly at target.
Copyright RTT News/dpa-AFX