In the joint declaration made by the Government of Iceland and Central Bank of Iceland on 27 March 2001, this is defined as aiming at an average rate of inflation, measured as the 12-month increase in the CPI, of as close to 2½% as possible.
Professional analysis and transparency are prerequisites for credible monetary policy. In publishing Monetary Bulletin four times a year, the Central Bank aims to fulfil these principles.
Monetary Bulletin includes a detailed analysis of economic developments and prospects, on which the Monetary Policy Committee's interest rate decisions are based. It also represents a vehicle for the Bank’s accountability towards Government authorities and the public. The framework of monetary policy and its implementation and instruments are described in the chapter entitled "Monetary policy and instruments", on pp. 61-63 of this edition of Monetary Bulletin.