Decisions on the application of the Central Bank's monetary policy instruments are taken by the Monetary Policy Committee (MPC). 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. Members of the MPC are Ásgeir Jónsson (chair), Rannveig Sigurdardóttir (vice-chair), Gunnar Jakobsson, Herdís Steingrímsdóttir and Ásgerður Ósk Pétursdóttir.

Monetary Policy Strategy

The MPC set 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 Bank's monetary policy instruments, MPC statements, and minutes of MPC meetings

The MPC is required to meet at least six times a year, and publish the minutes of its meetings, and explain its decision 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 each interest rate decision is announced. The minutes contain the Committee’s assessment of economic and monetary developments and prospects and the members’ reasons for their 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