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Seðlabanki Íslands
Looking ahead – Recovering in the midst of an international financial crisis
Svein Harald Øygard Governor, Central Bank of Iceland
Samtök verslunar og þjónustu
- 20. mars 2009
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The exchange rate has remained broadly stable
Gengið hefur verið tiltölulega stöðugt
The risk premium remains high
Áhættuálag hefur haldist hátt
Monetary easing commences
- The MPC has voted to lower the policy rate by 1
percentage point to 17 percent
- Economic indicators suggest that conditions for
easing are in place
- The fragility of private balance sheets calls for
exchange rate stability
- Important steps in the restructuring and re-
establishment of the financial system will be taken in the next few months
- The easing cycle must proceed with care
- Additional rate-setting meeting April 8, 2009
Vision for the journey ahead
Q 3 2009 Q 2 2009 Q 4 2009 2010 New growth & stability Q 1 2009
Financial Markets
- Negotiation processes
- Restructuring
- Recapitalisation
Fiscal Policy
- Medium-term
budget adjustments Real Economy
- Removal of
inflationary pressure
- Exports > Imports
Monetary Policy
- Monetary policy for new stability
- Gradual easing as stability allows