News - 12.08.2026
Persistent pains
Open meeting on the interaction between interest rates and inflation
For almost four years, interest rates have been very high in Iceland, with the aim of reducing inflation. This has not worked; on the contrary, inflation has risen over the past year. High policy interest rates hit those who are in debt, those who rent, and not least families with children, the hardest. It is now time to pause and consider whether this policy is serving its intended purpose.
VR, LÍV and Fagfélögin are convening an open meeting on the interaction between interest rates and inflation. The keynote speaker is Jaya Sood, an economist at the New Economics Foundation in the UK, who will discuss the advantages and disadvantages of using interest rates as a tool to bring inflation under control. This will be followed by a panel discussion with Ásgeir Brynjar Torfason, editor of Vísbending, Jón Sigurðsson, CEO of Stoðir and Tómas Brynjólfsson, Deputy Governor of Financial Stability. Halla Gunnarsdóttir, Leader of VR, is the moderator.
The meeting will be held at the VR headquarters at Kringlan 7 on 19 August and will begin at 11:00 AM.
