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Iceland central bank hikes by 6 percentage points

Iceland central bank hikes by 6 percentage points

Iceland's central bank Tuesday raised its key interest rate by a stunnning 6 percentage points to 18 percent.
Iceland has seen its currency plunge in recent weeks after its banking sector collapsed in October. An increase in interest rates would make its currency more attractive to foreign investors, thereby helping its value.
Prime minister Geir Haarde said separately on Tuesday that Iceland will need $4 billion in financial support on top of the $2 billion loan package announced by the International Monetary Fund. Icelandic officials are in talks with Nordic governments to secure such aid.
The country's central bank, or Sedlabanki, will publish a statement explaning its interest rate increase at 1100 GMT.


Updated : 2021-07-29 09:32 GMT+08:00