The Monetary Policy Committee (MPC) has voted to lower Central Bank interest rates by 0.5 percentage points. The deposit rate (current account rate) will be lowered to 8%. The maximum bid rate for 28-day certificates of deposit (CDs) will be 9.25%. The seven-day collateral lending rate will be 9.5% and the overnight lending rate 11%. (Central Bank press release)

Iceland’s National Audit Office sent out a statement yesterday saying that questions surrounding the Central Bank of Iceland’s lending to financial institutions last year remain unanswered and should be directed to the Althingi Parliamentary Investigation Committee. Read the full story

Press statement from the CBI: The Monetary Policy Committee (MPC) has voted to change Central Bank interest rates as follows. The deposit rate (current account rate) will be lowered by 0.5 percentage points to 8.5%. The Central Bank will continue to issue 28-day certificates of deposit (CDs) with a maximum bid rate of 9.75%, which is 0.5 percentage points lower than before. The seven-day collateral lending rate will be lowered by 1 percentage point to 10%, and the overnight lending rate will be lowered by 1.5 percentage points to 11.5%. Read the full story

Mar Gudmundsson, Chairman of the Central Bank of Iceland has confirmed that a portion of the promised loan to Iceland from the Scandinavian countries will be requested before the beginning of December and will hopefully be received before Christmas. Read the full story

The Monetary Policy Committee (MPC) has voted to lower the deposit rate (current account rate) by 0.5 percentage points to 9%. The maximum volume at weekly auctions of 28-day certificates of deposit (CDs) will be increased from 25 b.kr. to 30 b.kr., with a minimum bid rate of 9.5% and a maximum of 10.25%. This implies a 0.25 percentage point increase in the maximum interest rate. The seven-day collateral lending rate will be lowered from 12% to 11% and the overnight lending rate from 14.5% to 13%.

(Press release)

Gylfi Magnusson, Icelandic Minister for Economic Affairs says it has yet to be decided whether the country’s financial regulator (FME) and the Central Bank of Iceland will be merged. Read the full story

Central Bank of Iceland interest rate decision and issuance of 28-day certificates of deposit

The Monetary Policy Committee (MPC) has decided to keep the collateral loan and deposit rates unchanged at 12% and 9.5% respectively, but cut the overnight lending rate from 16% to 14.5%. Read the full story

The policy rate decision will be announced at 9:00 a.m. GMT today. The rationale behind the interest rate decision will be explained in a webcast at 11:00 a.m. GMT.

The webcast can be viewed through this link: Webcast September 24, 2009

Press release from the Central Bank of Iceland:

Már Guðmundsson took over from Svein Harald Øygard as Governor of the Central Bank today. Since 2004, Már has served as Deputy Head of the Monetary and Economic Department of the Bank for International Settlements in Basel, Switzerland. (see: news release from the BIS). Prior to that, he was employed by the Central Bank of Iceland for nearly two decades, including ten years as Chief Economist. Read the full story

The Monetary Policy Committee of the Central Bank of Iceland has decided to hold the policy interest rate unchanged at 12.0 percent. Interest rates on current accounts are unchanged at 9.5 percent. Other Central Bank interest rates are also unchanged.

From Sedlabanki.is (Central Bank of Iceland)