India, Feb. 5 -- The Central Bank of Iceland lowered the key interest rate for a third policy session in a row as policymakers assessed that inflationary pressures continue despite a slowdown in price growth.
The Monetary Policy Committee, led by Governor Asgeir Jonsson, cut the benchmark, which is rate on seven-day term deposits, by 50 basis points to 8.0 percent in a unanimous vote on Wednesday.
The previous change in the key interest rate was a similar reduction in November that followed a quarter-point cut in October.
The central bank expects continued disinflation in coming months. Economic activity is apparently stronger than estimated and wage costs continue to rise, the bank noted.
"Although inflation has eased and inflation exp...