Iceland’s Íslandsbanki raises interest rates on indexed home loans

Iceland’s Íslandsbanki has announced an increase in interest rates for indexed home loans, effective next Tuesday. Fixed interest rates for these loans will rise by 0.40 percentage points, while variable rates will see an increase of 0.50 percentage points. No specific explanation for this increase has been provided on the bank’s website.

Earlier this week, Arion Bank also raised interest rates on indexed loans by a slightly larger margin. According to Arion Bank’s statement, this increase is partly due to a rise in the required return on indexed financing. Meanwhile, Landsbankinn has yet to announce any plans for interest rate hikes.