WOOD Flash – Iceland macro: the tightening cycle has further to go
At its meeting yesterday (24 August), the MPC at the Central Bank of Iceland decided to raise the policy rate – the seven-day term deposit rate – by 75bps, to 5.50%. Further rate increases were signalled in the statement, but no material guidance was provided in terms of the scale. The comments from the Governor suggest that housing inflation is likely to have peaked. However, we believe the deceleration onwards will be slow, and will remain underpinned by a strong labour market and population growth. Moreover, an additional round of wage-related inflation is likely in store from the wage negotiations expected in 4Q. Looking ahead, we expect the tightening cycle to extend well into 1H23E and terminate at 8.00%.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.