Page last updated at 09:23 GMT, Thursday, 19 March 2009

Iceland interest rates cut to 17%

A bank customer holds a handful of Icelandic crowns
The krona has stabilised since interest rates were raised last year

The central bank of crisis-hit Iceland has cut its interest rate to 17%.

The rate cut is the first since Iceland agreed a $10bn financial aid package with the International Monetary Fund.

The Sedlabanki cut rates by one percentage point from 18%, where they had remained since October on the recommendation of the IMF.

Iceland's financial system collapsed in October under the weight of debt, leading to a currency crisis, rising unemployment and public protests.

Iceland's economy is forecast to shrink by almost 10% this year.

The country's currency, the krona, has stabilised since the October meltdown.

The central bank raised rates by six percentage points in October to the record high of 18%.

Print Sponsor

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific