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Iceland Hikes Key Rate to Five-Year High to Quell Housing Boom

  • Central bank beat expectations with a 100 basis-point hike
  • Inflation, which factors in real-estate costs, exceeds 7%

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Iceland’s central bank raised borrowing costs again by a full percentage point to a five-year high, doubling down on its struggle to curb inflation and cool one of Europe’s hottest housing markets.