Iceland Keeps Key Rate at 8% as Economy Shows Signs of Cooling

Iceland's central bank decided to maintain its key interest rate at 8%, marking the end of a seven-month campaign to tighten monetary policy. This move comes as the nation's economy, which has been grappling with persistent inflation, begins to show signs of cooling down. The decision reflects the bank's cautious optimism about the economy's stabilization, potentially influencing consumer spending and investment patterns as inflation pressures ease.