Minutes of the Monetary Policy Committee meeting of 2 April 2020 and updated crisis scenarios
The minutes of the Monetary Policy Committee (MPC) meeting of 2 April 2020 have been published on the website, together with the updated crisis scenarios discussed by the Committee at the meeting.
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Announcement on Central Bank of Iceland purchases of Treasury bonds
At the beginning of May 2020, the Central Bank of Iceland will begin buying Treasury bonds in the secondary market, in accordance with the 23 March 2020 statement by the Monetary Policy Committee. The objective of the purchases is to ensure monetary policy transmission across the yield curve, so that the more accommodative monetary stance is transmitted normally to households and businesses. In this context, particular consideration is given to the market effects that the foreseeable increase in Treasury bond supply will have on monetary policy transmission.
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Agreement on guarantee of credit institutions’ supplemental loans to businesses
The Ministry of Finance and Economic Affairs and Central Bank of Iceland have signed an agreement laying down terms and conditions for Treasury guarantees of credit institutions’ supplemental lending to businesses in response to the COVID-19 pandemic.
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Rules on Central Bank Facilities for Financial Undertakings amended
The Central Bank has decided to offer its counterparties special temporary credit facilities in the form of collateralised loans. The first auction will be held on 22 April 2020. The collateralised lending facilities are part of the Bank’s response to the unprecedented situation currently prevailing and are intended as a means of offering financial institutions increased access to liquidity on a temporary basis, against collateral deemed eligible by the Bank.
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IMF Spring Meetings 2020
Ásgeir Jónsson, Governor of the Central Bank of Iceland, participated in the Spring meetings of the International Monetary and Financial Committee of the IMF (IMFC) on Thursday 16 April, 2020. The Spring Meetings were in virtual format this year due to the Covid-19 pandemic. Lesetja Kganyago, Governor of the South African Reserve Bank, chaired the meeting and Katri Kulmuni, Finance Minister of Finland represented the Nordic-Baltic constituency on this occasion.
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