We would be cutting interest rates under normal circumstances

It is clear that the economy is cooling and job creation has slowed to some extent. Despite this, export industries such as fisheries and aluminium production are performing well, and tourism is also doing reasonably well, all things considered. The Icelandic króna remains relatively strong, and a new data centre industry is emerging, providing an additional source of revenue. Despite the economic slowdown, inflation stands at 5.9%, while uncertainty remains over the situation in the labour market.