Don't miss

Replay


LATEST SHOWS

#TECH 24

Station F: Putting Paris on the global tech map

Read more

THE INTERVIEW

Davos 2017: 'I believe in the power of entrepreneurs to change the world'

Read more

FRANCE IN FOCUS

French education with a difference: Teachers who think outside the box

Read more

#THE 51%

Equality in the boardroom: French law requires large firms to have 40% women on boards

Read more

FASHION

Men's fashion: Winter 2017/2018 collections shake up gender barriers

Read more

ENCORE!

Turkish writer Aslı Erdoğan speaks out about her time behind bars

Read more

REVISITED

Video: Threat of economic crisis still looms in Zimbabwe

Read more

BUSINESS DAILY

DAVOS 2017: Has the bubble burst?

Read more

BUSINESS DAILY

DAVOS 2017: Summit overshadowed by geopolitical changes

Read more

Business

Central bank cuts interest rate to 12 percent

Text by NEWS WIRES

Latest update : 2009-06-04

The Icelandic central bank announced on Thursday a one percent interest rate cut to 12 percent. This fourth drop in three months comes after Iceland suffered a major economic blow in October when its three main banks collapsed.

AFP - Iceland's central bank cut its key interest rate by one percentage point to 12 percent on Thursday, the fourth such drop in three months.

"The Monetary Policy Committee has decided to lower the Central Bank of Iceland's policy rate by 100 basis points to 12.0 percent," the bank said in a statement.

The Icelandic bank's announcement came one week after an International Monetary Fund mission to the North Atlantic island described the central bank's decision to cut interest rates from 18 percent in March as "very risky."

The European Central Bank and the Bank of England were both expected to hold their interest rates steady at record lows at their monetary policy meetings on Thursday.

Iceland has been awarded a 2.1-billion-dollar (1.6-billion-euro) loan from the IMF in a bid to stabilise its shaken economy, of which some 850 million dollars of IMF money has already been paid out.

A North Atlantic island of just 320,000 inhabitants, Iceland suffered a major economic blow in October when its three main banks collapsed, bringing to a screeching halt a decade of prosperity in which growth averaged 4.0 percent a year.

Following the crisis, Icelanders protested against the country's politicians and central bankers for months, ultimately pushing the former left-right government to step down in late January.

An interim leftwing government won a general election at the end of April.
 

Date created : 2009-06-04

COMMENT(S)