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"Inflation Will Remain Sluggish in the Coming Months"
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Landsbankinn predicts a 0.25 percentage point increase in the policy rate in the Central Bank's interest rate decision next week. Una Jónsdóttir, Landsbankinn's chief economist, says inflation is still high and that the inflation outlook has worsened. Under these circumstances, there is a risk that inflation will become entrenched. The Central Bank can use a policy rate increase to reduce investment and slow the economy. "We have to be careful n…
·Reykjavík, Iceland
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