Iceland slashes rates as economy faces meltdown

The Central Bank of Iceland has cut its key rate by 350 basis points on the back of the meltdown in the country's banking sector.

The decision, a surprise move, leaves the central bank's benchmark rate at 12%.

The central bank said that the "unprecedented turbulence" of recent weeks, which has seen Reykjavik take over the country's three biggest banks, had already resulted in a variety of jobs disappearing "virtually in the blink of an eye."

"Demand has declined precipitously, and by all

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.