Survey of market expectations
The Central Bank of Iceland conducted a survey of market agents’ expectations over the period from 20 through 22 January. The survey findings suggest that market agents’ inflation expectations are broadly unchanged since the Bank’s October survey. According to the median response in this survey, participants expect inflation to measure 2.1% in Q1/2020 and 2.2% in both Q2 and Q3/2020. They expect inflation to measure 2.4% in one year and 2.5% in two years, as in the previous survey.
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Monetary Policy Committee report to Parliament
The Central Bank Monetary Policy Committee’s (MPC) report to Parliament (Alþingi) on the Committee’s work in H2/2019 has been posted to the Bank’s website. The report is supplemented by a wide range of supporting material spanning 178 pages. Furthermore, for the first time, the MPC report is accompanied by reports from the Committee’s external members. As is stated in the Committee’s report on responses to some of the proposals from the task force on the review of the monetary policy framework, published in December 2018, each external Committee member will also send a separate report annually to Parliament.
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Foreign exchange market, exchange rate developments, and international reserves 2019
The króna depreciated by 3.1% in 2019. Turnover in the interbank foreign exchange market totalled 188.3 b.kr. Bank’s turnover in the interbank market totalled 7.6% in 2019. The Bank's international reserves increased by roughly 86 b.kr. in 2019, to 822 b.kr. by the year-end. The Central Bank’s foreign exchange balance – i.e., the difference between the Bank’s foreign-denominated assets and liabilities – was positive by approximately 646 b.kr. at year-end 2019, as opposed to 627 b.kr. at the end of 2018.
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New organisational chart for the Central Bank of Iceland
A new organisational chart for the Central Bank of Iceland took effect yesterday, 8 January 2020, on the basis of the new Act on the Central Bank of Iceland, no. 92/2019. As is provided for in the Act, the Central Bank and the Financial Supervisory Authority merged at the beginning of 2020. Under the new organisational structure, some departments have been abolished or merged, some employees have been transferred between departments, and eight positions have been eliminated.
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First meeting of the Central Bank Financial Supervision Committee
The first meeting of the Financial Supervision Committee was held today at the Central Bank of Iceland. The Financial Supervision Committee takes decisions entrusted to the Financial Supervisory Authority by law and Governmental directives. The Committee’s rules of procedure were approved at today’s meeting.
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