Faroese banks expected to raise interest rates this week

Faroese banks are expected to raise their interest rates later this week, with a further increase likely later this year, KVF reports.

Johnny í Grótinum, an economist and chairman of the Economic Council, said the increase follows the European Central Bank’s decision to raise its rate by a quarter of a percentage point on Thursday.

The European Central Bank raised rates to curb inflation linked to unrest in the Middle East and high oil prices.

Í Grótinum discussed the outlook as a guest on Breddin, a KVF radio programme, on Tuesday morning.