

Statement of the Monetary Policy Committee 5 February 2025
The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the Bank’s interest rates by 0.5 percentage points. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore be 8.0%. All Committee members voted in favour of the decision.


Monetary Bulletin published
The Monetary Bulletin, 2025/1, has been published. Monetary Bulletin is published four times a year. In early May and early November, it contains an inflation and macroeconomic forecast, together with an in-depth analysis of economic and monetary developments and prospects. The February and August issues include updated inflation and macroeconomic forecasts and an abbreviated report on economic and monetary developments and outlook.


Webcast: Statement of the Monetary Policy Committee and publication of Monetary Bulletin 5 February 2025
A statement of the Monetary Policy Committee was published on the Central Bank of Iceland website Wednesday 5 February 2025 at 08:30 hrs. The Bank’s Monetary Bulletin was published at 08:35 hrs. At 9:30 hrs. a press conference on the statement and the contents of the Monetary Bulletin was held.


Survey of market expectations
The Central Bank of Iceland conducted a survey of market agents’ expectations over the period from 20 through 22 January 2025. A total of 39 agents in the bond market, including banks, pension funds, mutual and investment funds, securities brokers, licensed asset management firms, and insurance firms were invited to participate. Responses were received from 30 market participants, giving a response ratio of 77%.


Central Bank lending survey
The Central Bank conducts quarterly lending surveys among the four commercial banks. The survey results indicate that the commercial banks’ supply of mortgage loans to households has contracted slightly in the past three months but is expected to remain unchanged in the coming six months.
