The Central Bank of Iceland yesterday lowered its interest rate to its lowest level in six years. The one percent drop to seven percent was bigger than any in recent months. Read the full story

The Central Bank of Iceland was the scene of protests this morning over the Bank and the FME financial regulator’s joint proposal for how to deal with foreign currency indexed car loans, recently ruled illegal by the Supreme Court. Protesters believe the proposal is the best possible for the banks and the worst possible for indebted customers. Read the full story

The Monetary Policy Committee (MPC) has voted to lower Central Bank interest rates by 0.5 percentage points. Read the full story

Iceland’s financial stability campaign is bearing some good results, but much remains to be done. So says Central Bank of Iceland governor, Mar Gudmundsson. Read the full story

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)

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)

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)

From the Central Bank of Iceland:

The Prime Minister of Iceland has requested the Central Bank to assess the advantages and disadvantages of changing the monetary policy framework that has been applied in Iceland. The Central Bank has published a preliminary summary of this work and a detailed report is planned to be published before the end of the winter of 2009-2010. Read the full story

Press release from the Central Bank of Iceland:

The Icelandic Government has approved a strategy for removal of capital account restrictions, which was prepared by the Central Bank of Iceland in consultation with the Ministry of Business Affairs and the International Monetary Fund. In order to avoid economic instability when the controls are lifted, their removal is carefully sequenced, with each phase dependent upon the fulfilment of specific conditions. Read the full story