By law, decisions on the application of the Central Bank's monetary policy instruments are taken by the Monetary Policy Committee; cf. the Act on the Central Bank of Iceland, no. 92/2019. These monetary policy instruments are its interest rate decisions, transactions with credit institutions other than loans of last resort, decisions on reserve requirements, and securities and foreign exchange market transactions aimed at achieving price stability. Current members of the Monetary Policy Committee are Ásgeir Jónsson (chair), Rannveig Sigurðardóttir (vice-chair), Gunnar Jakobsson, Herdís Steingrímsdóttir, and Ásgerður Ósk Pétursdóttir.

Monetary Policy Strategy

The MPC sets the Monetary Policy Strategy. The strategy provides a comprehensive framework within which monetary policy decisions are taken and communicated to the public.

Monetary Policy Strategy 

Decisions on the monetary policy instruments and publication of minutes

The Monetary Policy Committee (MPC) is required to meet at least six times a year, publish the minutes of its meetings, and explain its decisions and the rationale behind them. Each monetary policy decision is published in a statement released by the Committee before the market opens on the day the decision is announced. The MPC publishes the minutes of its meetings two weeks after the announcement of each interest rate decision. Included in the minutes is the Committee’s assessment of economic and monetary developments and prospects, as well as the rationale for members’ votes. Further information can be found in the Monetary Policy Committee Rules of Procedure, which are endorsed by the Central Bank of Iceland Supervisory Board.