Interest rates in the Faroe Islands set to rise further

Interest rates in the Faroe Islands are expected to rise further, KVF reports, as inflationary pressure remains relatively high and the economy has performed better than expected.

Faroese banks recently announced an increase, and the National Bank of the Faroe Islands says rates could rise again later this year. The Danish central bank raised its key rates in line with increases by the European Central Bank, prompting rates to rise in the Faroe Islands as well.

The average lending rate stood at 4.39 per cent in August, while the average deposit rate was 0.65 per cent. Rates are due to increase in late October or November.