Central Bank Governor: Interest Rate Cut Process Complete if Inflation Picks up Again

The Monetary Policy Committee of the Central Bank of Iceland announced its policy rate decision today. The policy rate was lowered this morning from 7.75 percent to 7.50 percent. The committee's statement says that tensions in the economy have gradually decreased. However, there still appears to be some strength in economic activity. The committee will next make a decision on the policy rate in August. Further reductions are dependent on inflati…