Iceland's central bank keeps key interest rate unchanged

COPENHAGEN: Iceland's central bank on Wednesday kept its key deposit rate unchanged at 4.25 percent, as inflation has remained in line with the bank's target in recent months.

"Neither the inflation outlook nor inflation expectations have changed to any marked degree since the Committee's last meeting," the central bank said in a statement.

The bank also said economic growth was expected to ease this year due to weaker exports and a slowdown in domestic demand.

The central bank last cut the rate in October in response to a tourism boom that had strengthened the country's crown currency.