Iceland’s Central Bank Cuts Rates to Limit Advance of Krona
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Iceland’s central bank cut interest rates for the second time in four months as an appreciation in the krona is imperiling its inflation target and hurting exporters.
The benchmark seven-day term deposit rate was lowered by 0.25 percentage point to 5.00 percent, the Reykjavik-based Sedlabanki said Wednesday. The krona slid 0.3 percent to 118.77 per euro as of 9:36 a.m. local time.