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The "price-indexed setback" is temporary and expects the return of a nominal interest lending system

Summary by Vísir
After a strong push by households into indexed lending during a time of high interest rates, there are signs that “this indexed setback” will be short-lived, as inflation is now falling, according to the Central Bank Governor. He believes that we are about to see the return of a nominal interest rate lending system, partly due to households’ emphasis on building equity, and points out that commercial banks are also looking to reduce their share …
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After a strong push by households into indexed lending during a time of high interest rates, there are signs that “this indexed setback” will be short-lived, as inflation is now falling, according to the Central Bank Governor. He believes that we are about to see the return of a nominal interest rate lending system, partly due to households’ emphasis on building equity, and points out that commercial banks are also looking to reduce their share …

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Vísir broke the news in on Tuesday, April 22, 2025.
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