The eruption of Fagradalsfjall, in Southwest Iceland, is taking place in the farm Hraun (by the way, 'lava') near Grindavík, and landowners have been informed in recent weeks about whether the land is for sales, mbl.is reports. This was confirmed by their spokesman, Sigurður Guðjón Gíslason.
"Inquiries have been received from immobilizers and from Icelanders, who hold their cards close by and reveal little about their plans," he said. "My suspicion is that some of them are supported by strong investors, and behind this is something important." houses for sale
He adds that the sales talks have not progressed and price ideas are similar to the price of a luxurious apartment. That is an indirect reference to the recent Morgunblaðis report, which describes luxury apartments in Reykjavík, which cost ISK 500 million (USD 4 million; EUR 3.4 million). Landowners, he adds, have various ideas about prices.
The land of Hraun extends from the shore into the mountains and valleys and spans up to 60 km2 (23 sq mi).
Some geologists suggested that the Fagradalsfjall Mountain eruption that started on 19 March could last a long period, even a year.
"There is one inquiry every two or three years, perhaps, from the owners of Hraun who count 24, as to whether the land is for sale," says Sigurzur. "Now, every week we're contacted, or more. Clearly, the eruption will continue for a long time, potentially an attraction equal to the Blue Lagoon," he concludes. As officials have acted to stem the spike in inflation, Iceland's central bank was the first in western Europe to tighten monetary policies since the pandemic by increasing interest rates.
The deposit rate for the seven day term has been increased to 1 percent by a quarter — the response to higher consumer price gains, increased labor costs and higher housing costs. The institution increased for the first time in 2 1/2 years.
The sudden shift in Iceland's policies stands out in a region where central banks continue to deploy ultra-low easing for recovery to take hold from Frankfurt to London.
Hike Iceland Rate
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Norway had attracted most attention as a likely first-mover among its neighbors before the decision on Wednesday, as it had signaled a rate increase as quickly as September. Denmark, which raised in March, did so not as a shift away from the stimulus for technical reasons.
In an interview in Reykjavik, Governor Asgeir Jonsson said the bank had exceeded "our own expectations" to boost domestic demand through conventional rate cuts. Iceland's relatively young population and faster growth than in Europe "would always need positive rates," he added.
'We were preparing to use non-conventional monetary policy to stimulate the economy as a quantitative easing but ultimately it was not really necessary,' said Jonsson.
The North Atlantic Island was more exposed to the pandemic than its Nordic peers because last year it had a serious blow on its most important tourism industry. A string of rate cuts caused a house price rally. In April, Icelandic inflation, which comprises real-estate expenses, rose to 4.6%, well above the bank's objective of 2.5%.
The bank said that inflationary pressure "appears to be widespread," citing among the factors "the corona's depreciation in 2020 and steep increases in salaries and house prices."
Although at least one analyst today forecast an increase, most expected one only in the third quarter.
With at least one vaccine jab in half of Iceland's adult population, pandemic restrictions are planned to be gradually eased in the coming weeks.
The central bank now expects to grow "only" by 3% this year, and "more than" by 5% in 2022, with signs of a stronger domestic demand recovery and reduced unemployment.
"The economic slackness thus appears to be smaller and closer than previously estimated," it said.