Iceland has lowered its interest rates by 0.75 percentage points, from 1.75% to an annual rate of 1%.
The key rates a tool used by Central Banks to implement monetary policy.
A reduction in interest rates counters a weakening of prices, or a possible deflationary situation. It also revitalizes the economy and helps to increase exports.
This change is the first to have taken place since on March18th 2020, when the Central Bank lowered interest rates by 0.75 percentage points to 1.75%.