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Minutes of the MPC

20.11.2019

Here are the minutes of the Monetary Policy Committee of the Central Bank of Iceland from the meeting held on 4 and 5 November 2019. There, the Committee discussed economic and financial market developments, the interest rate decision on 6 November, and the communication of that decision.

IMF Article IV visit to Iceland 30 October - 11 November 2019

11.11.2019

A mission from the International Monetary Fund has issued the following concluding statement after a two week Article IV Consultation visit to Iceland. The mission met with representatives of government, the Central Bank, The Financial Supervisory Authority as well as representatives of financial institutions and the real sector.

Governor addresses Chamber of Commerce: Blazing a low-interest rate trail

08.11.2019

Governor Ásgeir Jónsson reviewed monetary developments and prospects at the Chamber of Commerce monetary policy meeting, held at the Hilton Hotel this morning, Thursday 7 November. The theme of the meeting was “Blazing a low-interest rate trail”, and the Governor discussed Iceland’s low-interest rate environment and the long-term structural changes...

Monetary Bulletin 2019/4

06.11.2019

Monetary Bulletin 2019/4 has been published on the Central Bank's website. Monetary Bulletin is published four times a year. The November issue contains updated inflation and macroeconomic forecasts and an abbreviated report on economic and monetary developments and outlook. Monetary Bulletin is also issued in Icelandic under the title Peningamál.

Statement of the Monetary Policy Committee 6 November 2019

06.11.2019

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the Bank’s interest rates by 0.25 percentage points. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore be 3%. According to the Bank’s new macroeconomic forecast, published in the November Monetary Bulletin, the GDP growth outloo...

Webcast from a press conference

05.11.2019

Ásgeir Jónsson, Governor and Chair of the MPC, and Þórarinn G. Pétursson, Chief Economist and MPC member, explained the rationale behind the Committee’s decision. The contents of the new issue of Monetary Bulletin was also presented.

Survey of market expectations

30.10.2019

The Central Bank of Iceland conducted a survey of market agents’ expectations over the period from 21 through 23 October. A total of 28 agents in the bond market, including banks, pension funds, mutual and investment funds, securities brokers, and licensed asset management firms were invited to participate. Responses were received from 25 market pa...

Minutes of the MPC

16.10.2019

Here are the minutes of the Monetary Policy Committee of the Central Bank of Iceland from the meeting held on 30 September and 1 October 2019. There, the Committee discussed economic and financial market developments, the interest rate decision on 2 October, and the communication of that decision.

Restrictions on transactions with the Central Bank

14.10.2019

The Central Bank of Iceland has decided that, effective 1 April 2020, it will reduce the number of parties eligible to hold current accounts with the Bank. These parties currently include banks, savings banks, credit institutions, governmental institutions, and various Government-owned funds. From 1 April onwards, however, only deposit-taking insti...

Changes in exchange rate listing

09.10.2019

From 1 April 2020 onwards, the Bank will publish only the mid-rate of all currencies included in its listing, and this mid-rate will be the official reference exchange rate. Publication of the buying and selling rates will be discontinued. This is consistent with the practice of central banks in comparison countries.

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For further information on the benefits of establishing a business in Iceland please feel free to contact us.

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