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Statement of the Monetary Policy Committee 12 December 2018

12.12.2018

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to keep the Bank’s interest rates unchanged. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore remain 4.5%. According to the recently published national accounts, GDP growth measured 5% for the first nine months of the year, slightly mor...

Fitch affirms Iceland at A with a stable outlook

07.12.2018

Today, Fitch Ratings affirmed Iceland’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at A with a stable outlook. According to the rating agency, this rating balances the economy’s very high income per capita, strong governance, human development and doing business metrics against a high dependence on commodity exports, vulnerability to ex...

S&P Global affirms Iceland at A/A1 with a stable outlook

07.12.2018

Today S&P Global affirmed Iceland’s A/A-1 long- and short-term foreign and local currency sovereign credit ratings with a stable outlook. According to the rating agency, Iceland’s fiscal and external balance sheets have strengthened in recent years. However, the small, relatively concentrated economy remains vulnerable to external developments and...

Current account surplus 76.5 b.kr. in Q3 2018

03.12.2018

The current account surplus measured 76.5 b.kr. in Q3/2018. There was a deficit on goods trade in the amount of 43.7 b.kr and a 123.7 b.kr. surplus on services trade, as well as a 2.4 b.kr. surplus on primary income and a 6.0 b.kr. deficit on secondary income. According to the preliminary figures, foreign assets totalled 3,380 b.kr. at the end of t...

Minutes of the MPC

21.11.2018

Here are the minutes of the Monetary Policy Committee of the Central Bank of Iceland from the meeting held on 5 and 6 November 2018. There, the Committee discussed economic and financial market developments, the interest rate decision on 7 November, and the communication of that decision.

IMF Executive Board completes Article IV Consultation on Iceland

14.11.2018

The Executive Board of the International Monetary Fund completed its Article IV Consultation on the status and outlook for the Icelandic economy on Friday November 9. The IMF holds similar consultations with member countries every one to two years on the basis of Article IV of the Articles of Agreement of the IMF.

The FX Global Code

09.11.2018

The Central Bank of Iceland has acquainted itself with the FX Global Code and the principles it lays down concerning foreign exchange transactions. It has taken steps to ensure compliance with the Code and has signed a statement of commitment to this effect. The Bank considers it important that participants in the domestic foreign exchange market a...

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Incentives

Iceland focuses on a favorable business environment, including low corporate tax, availability of land and green energy at competitive prices and efficiency within European legislative framework. New direct investment projects can apply for an investment agreement, ensuring generous regional incentives, including a corporate tax rate ceiling of only 15%.

Why Iceland

Along with having one of the lowest corporate tax rate in Europe, Iceland has a highly educated workforce which is ranked among the highest in the world, offers competitively priced renewable energy with an advanced infrastructure making Iceland an ideal location for investors