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

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. Read the full story

Pursuant to Article 23, Paragraph 1 of the Act on the Central Bank of Iceland, the Prime Minister has appointed Már Guðmundsson to the position of Governor of the Central Bank for a term of five years, effective August 20, 2009; and Arnór Sighvatsson to the position of Deputy Governor of the Central Bank for a term of four years, effective July 1, 2009. The term of appointment for the Deputy Governor is determined pursuant to Paragraph 1 of Temporary Provision III of Act no. 26/2009. 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

The Monetary Policy Committee has decided to lower the Central Bank of Iceland’s policy rate by 100 basis points to 12.0 percent. Overnight lending rates will also be lowered by 100 basis points. Other Central Bank interest rates will remain unchanged. Read the full story