Monetary Bulletin provides a quarterly overview of monetary developments and prospects, including an inflation forecast, which plays an important role in the formulation of monetary policy.

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 7.25%. All Committee members voted in favour of the decision.

A statement of the Monetary Policy Committee will be published on the Central Bank of Iceland website, Wednesday 4 February, at 08:30 hrs. The Bank’s Monetary Bulletin will be published at 08:35 hrs. At 9:30 hrs., a press conference on the statement and the contents of the Monetary Bulletin will be held.

The Central Bank of Iceland conducted a survey of market agents’ expectations over the period from 19 through 21 January. A total of 39 agents in the bond market, including banks, pension funds, mutual and investment funds, securities brokers, licensed asset management firms, and insurance firms were invited to participate. Responses were received from 31 market participants, giving a response ratio of 79%.