22.05.2019

Monetary Bulletin 2019/2

Monetary Bulletin 2019/2 has been published on the Central Bank's website. Monetary Bulletin is published four times a year. The May 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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22.05.2019

Statement of the Monetary Policy Committee 22 May 2019

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 4%. According to the Bank’s new macroeconomic forecast, published in the May issue of Monetary Bulletin, the GDP growth outlook has changed markedly since the Bank’s last forecast. Output is now forecast to contract by 0.4% this year instead of rising by 1.8%, as was forecast in February.

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21.05.2019

Interest rate decision, webcast and Monetary Bulletin release

The Bank will publish the Monetary Policy Committee’s (MPC) interest rate decision on its website today at 08:55, followed by Monetary Bulletin 2019/2 at 09:00 hrs. Beginning an hour later, at 10:00 hrs., will be a press conference where Már Guðmundsson, Governor and Chair of the MPC, and Þórarinn G. Pétursson, Chief Economist and MPC member, will explain the rationale behind the Committee’s decision. The contents of the new issue of Monetary Bulletin will also be presented at that time.

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15.05.2019

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.

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02.05.2019

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.

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