Up to 5.75% now; seems to be having the positive effect internally as interest income is up and solid.
Morons of course now dragging out the "capital inflows!" metaphor.
Look for more out-sized financial growth in Iceland this year as they keep raising rates to combat their imaginary bogeyman "inflation!" metaphor.
Same thing is going to happen here if the Fed keeps raising rates this year.
Iceland has raised its key rate three times since June, to 5.75 percent, as the island completes its economic resurrection and plans further to ease capital controls later this year. Economic growth is now faster than the euro zone average, and the central bank says inflation will exceed its target this year as wage growth soars.
#Iceland regulators mull new rules as capital inflows return https://t.co/4wY7Lo0kbF via @business pic.twitter.com/bGbicbQCd2
— Forward Guidance (@ecoeurope) January 13, 2016
4 comments:
Matt-
Hard to tell what is more fearsome for TPTB there....
"inflation will exceed its target this year"
or
"as wage growth soars."
Dont worry I'm sure they will fuck both up....
No worries, they will relate both, as always. Mainstream to the rescue!
Inflation AND wage growth? Oh my!
What about Tom's question from month's back?
"Why do assets 'appreciate,' while wages 'inflate?' "
so much could be quickly fixed, just by defining the semantic terms in more discussions
reminder: most words in all languages have multiple, context-dependent, meanings;
http://acl.ldc.upenn.edu/P/P96/P96-1006.pdf
(every 5yr old knows that, by experience; social momentum encouragae 'em to forget in selective situations?)
'All words are infinitely polysemous'
https://en.wikipedia.org/wiki/Polysemy
That's partly why people USING their brain often feel like they're talking to the brain-dead, devoid of cognitive agility.
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