Iceland crisis

Shockingly high interest rate!
October 28, 2008, 2:57 pm
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The Central Bank of Iceland has now issued new interest rate of 18 percent. For Icelandic economy this might mean further troubles for businesses which are already in trouble because of high dept, partly because of foreign dept and currency crisis.

The Central Bank of Iceland’s surprise six percent interest rate raise this morning to 18 percent is part of the deal agreed with the International Monetary Fund (IMF). According to chairman of the Central Bank, David Oddsson in a press conference this morning, raising interest rates is a sensible action to take at this time.