COPENHAGEN Oct 5 Iceland's central bank kept
its key deposit rate unchanged at 5.25 percent on Wednesday.
"The likelihood of increased macroeconomic imbalances and
the uncertainty associated with capital account liberalisation
argue for caution in interest rate setting," the central bank
said in a statement.
The central bank's monetary policy in the coming term will
depend on economic developments and the success of the capital
account liberalisation process, it said.
The central bank cut its key deposit rate in August, citing
an improved inflation outlook, after 10 months of keeping the
The inflation outlook is unlikely to have changed from the
previous forecast by the central bank in August , it said.
(Reporting by Stockholm and Copenhagen)