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.
No comments:
Post a Comment