The annual rate of inflation in Iceland has dropped to 8.6 percent in November, compared to 9.7 percent in October. This is the lowest it has been since autumn 2007; but still a long way from the Central Bank of Iceland’s targeted 2.5 percent. Read the full story

The future of Greenland’s remote settlements has come under scrutiny after the Democratic Party’s Palle Chritiansen questioned the feasibility of villages with fewer than 100 residents. Read the full story

Changes in subsidies distributed by the Greenland government combined with the lingering effects of the economic downturn are forecasted to spell the end of the printed newspaper. Read the full story

Kaupthing Bank loaned its staff a total of ISK 47.3 billion (in the region of USD 640 million at the time) solely to buy its own shares in 2006 alone. This comes from the tabloid DV newspaper which claims to have a complete copy of the Kaupthing 2006 loan book in its possession. The newspaper reports, among other things, that Kristjan Arason, then head of commercial banking was granted ISK 893 million in so called ‘bullet loans’. Arason is the husband of former Independence Party Minister of Education Thorgerdur Kartin Gunnarsdottir. Read the full story

Iceland’s rate of inflation increased 1.38 percent in June, meaning a rate of 12.2 percent inflation in the last 12 months (16.7 percent when housing costs are excluded).

This rate of inflation is higher than the banks predicted, with NBI (Landsbanki) predicting 1.2 percent and Islandsbanki just 0.9 percent. Read the full story

Iceland’s Prime Minister, Johanna Sigurdardottir said today that the state should not stay in control of the banks a day longer than is strictly necessary for their reorganisation. A new parliamentary bill recommends that the state bank holding organisation be wound up after five years, as the banks should already have been re-privatised by that time. Read the full story

STATEMENT FROM THE CENTRAL BANK OF ICELAND:

The Monetary Policy Committee has decided to lower the Central Bank of Iceland’s policy rate by 150 basis points to 15.5 percent. Other interest rates of the Bank will be lowered accordingly. A webcast will begin at 11 a.m. GMT today, where the rationale behind today’s decision will be presented.

Gylfi Zoega, professor of Economics at the University of Iceland, said in an exclusive interview for IceNews, that reopening the market is essential for the economic future of the northern island nation. Read the full story

It is of critical importance for Iceland to improve international relations and increase its credit rating. So says Gylfi Zoega, University of Iceland economist, adding that the government seems to be burning bridges in its wake with regard to its relations with international financers and other nations. Without foreign capital, he says, there is no future at all for Iceland. Read the full story

The mayor of Isafjordur in Iceland’s Westfjords region has revealed that the number of town council committees will be reduced and the remaining ones will have fewer members. The merging and trimming of council committees could save the local government ISK 2.3 million (USD 20,163), according to mbl.is. Read the full story