11.11.2019

IMF Article IV visit to Iceland 30 October - 11 November 2019

A mission from the International Monetary Fund has issued the following concluding statement after a two week Article IV Consultation visit to Iceland. The mission met with representatives of government, the Central Bank, The Financial Supervisory Authority as well as representatives of financial institutions and the real sector.

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08.11.2019

Governor addresses Chamber of Commerce: Blazing a low-interest rate trail

Governor Ásgeir Jónsson reviewed monetary developments and prospects at the Chamber of Commerce monetary policy meeting, held at the Hilton Hotel this morning, Thursday 7 November. The theme of the meeting was “Blazing a low-interest rate trail”, and the Governor discussed Iceland’s low-interest rate environment and the long-term structural changes that have allowed for lower domestic interest rates.

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06.11.2019

Monetary Bulletin 2019/4

Monetary Bulletin 2019/4 has been published on the Central Bank's website. Monetary Bulletin is published four times a year. The November 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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06.11.2019

Statement of the Monetary Policy Committee 6 November 2019

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the Bank’s interest rates by 0.25 percentage points. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore be 3%. According to the Bank’s new macroeconomic forecast, published in the November Monetary Bulletin, the GDP growth outlook for H2/2019 has deteriorated relative to the August forecast. In H1, however, GDP growth exceeded the forecast, and a contraction of 0.2% is therefore expected for the year as a whole, as was projected in August. The outlook for 2020 has also deteriorated, with GDP growth now forecast at 1.6%.

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05.11.2019

Webcast from a press conference

Ásgeir Jónsson, Governor and Chair of the MPC, and Þórarinn G. Pétursson, Chief Economist and MPC member, explained the rationale behind the Committee’s decision. The contents of the new issue of Monetary Bulletin was also presented.

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