Survey of market expectations

According to a survey of the Central Bank of Iceland market agents’ short-term inflation expectations have fallen since the Bank’s late-January survey. Their long-term expectations also fell marginally from the previous survey. According to the median response in this survey, participants expect inflation to measure 3.3% in Q2 and Q3/2019 and then fall to 3% in Q4/2019. They also expect inflation to measure 3% one year ahead and 2.8% two years ahead. Participants’ responses concerning the monetary stance have changed markedly in this survey: no one considered the current monetary stance too loose, whereas nearly a fourth of respondents were of that opinion in the last survey.


Capital controls surveillance no longer a separate Central Bank department

The Central Bank of Iceland’s Capital Controls Surveillance Unit (CCSU) was abolished as a separate department within the Bank at the beginning of May 2019. The CCSU’s remaining projects will be transferred either to the Bank’s Financial Stability Department or to the Legal Department.


Newly established Payment Council holds inaugural meeting

The Central Bank of Iceland’s newly established Payment Council held its first meeting on Tuesday 23 April 2019. The Payment Council is a consultative forum for governmental authorities, market participants, and other stakeholders concerning issues relating to payment intermediation and financial market infrastructure. The Council’s aim is to ensure that policy formulation in the fields of payment intermediation and financial market infrastructure in Iceland is based on appropriate foundations, with security, efficiency, and efficacy as guiding principles. The Bank prepares the Council’s meetings, and the Governor presides over the meetings. All materials relating to the Payment Council will be published on the Bank’s website soon after each meeting.


The Spring Meetings of the International Monetary Fund 2019

Governor Már Gudmundsson attended the Spring Meetings of the IMF’s International Monetary and Financial Committee, IMFC, which were held in Washington DC 12-14 April. Governor Gudmundsson represents Iceland in the IMF’s Board of Governors, which is the Fund’s highest decision-making body. Magdalena Andersson, the Swedish Finance Minister, represented the Nordic and Baltic countries in the Committee on this occasion.


Financial Stability 2019/1

The Bank’s Financial Stability report 2019/1 presents an overview of the position of the financial system, its strengths and potential weaknesses, and the macroeconomic and operational risks it may face. Financial Stability is also published in Icelandic under the title Fjármálastöðugleiki.