06.02.2019

Monetary Bulletin 2019/1

Monetary Bulletin 2019/1 has been published on the Central Bank's website. Monetary Bulletin is published four times a year. The February issue contains updated inflation and macroeconomic forecasts and an abbreviated report on economic and monetary developments and outlook. Monetary Bulletin is also issued in Icelandic under the title Peningamál.

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06.02.2019

Statement of the Monetary Policy Committee 6 February 2019

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to keep the Bank’s interest rates unchanged. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore remain 4.5%. According to the Bank’s new macroeconomic forecast, published in the February Monetary Bulletin, GDP growth will slow markedly this year, to 1.8%. This is about 1 percentage point less than the Bank projected in November, and if this forecast materialises, it will be Iceland’s weakest output growth since 2012. The slowdown in growth is due in particular to a contraction in tourism. Therefore, the outlook is for the positive output gap to narrow faster than previously assumed.

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31.01.2019

Statement regarding Nordic-Baltic financial crisis simulation, January 2019

The Nordic and Baltic financial stability authorities have conducted a joint financial crisis management exercise. The exercise was held from 22 to 23 January 2019 and involved 31 authorities from Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden as well as relevant European Union authorities. The exercise followed a hypothetical crisis scenario involving fictitious financial institutions in the Nordic and Baltic countries and tested the respective authorities’ crisis management capabilities and regional cooperation.

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30.01.2019

Survey of market expectations

The Central Bank of Iceland’s market expectations survey was carried out on 21-23 January. The survey findings suggest that market agents’ short- and medium-term inflation expectations have fallen since the Bank’s late-October survey. According to the median response in this survey, participants expect inflation to measure 3.6% in Q1/2019, rise to 3.7% in Q2, and remain there for the rest of the year. They also expect inflation to measure 3.5% one year ahead and 3% two years ahead. The survey also indicates that respondents expect the EURISK exchange rate to be 138 in one year’s time, which entails a slight weakening of the króna from the time the survey was conducted.

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23.01.2019

Monetary Policy Committee Report to Parliament

The Monetary Policy Committee Report to Parliament on the Committee's work during the second half of 2018 has been published on the Central Bank’s website. The Act on the Central Bank of Iceland stipulates that the Monetary Policy Committee (MPC) of the Central Bank of Iceland submit to Parliament a report on its activities twice a year and that the contents of the report be discussed in the Parliamentary committee of the Speaker’s choosing.

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