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Thursday, 29 October 2026 Icelandic stories. Global audience.
Business & Politics

Icelandic bank official says Central Bank pushed up unemployment

Deputy governor Þórarinn G. Pétursson told mbl.is the Central Bank acted to increase joblessness, according to Mannlíf. Claims of lost trust in the governor have also surfaced.

City skyline with tall glass office tower (Central Bank of Iceland)
Image: mandoft from El Campello (Alicante), Spain / Wikimedia Commons (CC BY-SA 2.0) · licence, original (resized) Illustrative image.

Þórarinn G. Pétursson, the deputy governor for monetary policy at the Central Bank of Iceland, stated in an interview that the Bank deliberately pushed up unemployment in the country. The remarks were reported by Mannlíf, which cited an interview published by mbl.is.

According to Mannlíf, the governor of the Central Bank, Ásgeir Jónsson, has lost all public trust in his work. Further details regarding public reaction or official response from the Bank are not yet known.

Sources

Image: mandoft from El Campello (Alicante), Spain / Wikimedia Commons (CC BY-SA 2.0) · licence, original (resized) Illustrative image.