The Board of Governors of the Central Bank of Iceland has decided to raise the Bank’s policy interest rate by 0.75 percentage points to 12.25% as of May 23.
I believe the Icelantic government has not done with the interest increase yet. The next interest rate decision by the Board of Governors of the Central Bank of Iceland will be announced on Thursday, July 6, coinciding with publication of the next Monetary Bulletin. It might raise another .75%. Is it possible to borrow the money from Japan at about 1.5% and use the proceeds to buy Icelantic government bonds with maturity of 5-10 years to lock in 13% to 14% annual yields and pray its inflation will be down from current 7.6% and its overheat economy will be cooling down soon.
