Iceland cuts interest rates to 7%

18 08 2010

Iceland’s central bank has cut its key interest rate to 7% from 8%.

A rate cut had been predicted after inflation eased and the country’s currency strengthened, although the reduction was larger than expected.

Iceland’s interest rate hit a peak of 18% in October 2008 when the country’s banking system was thrown into crisis by the global credit crunch.

The crisis led to the country’s largest banks being taken over by the government.

In late 2008, the International Monetary Fund approved a $2.1bn (£1.4bn) loan for Iceland, making the country the first Western European nation to get an IMF loan since 1976.

Advertisements




German economy sees ‘record’ growth of 2.2%

13 08 2010

The German economy grew by 2.2% in the three months to the end of June, its fastest quarterly growth in more than 20 years, official figures show.

“Such quarter-on-quarter growth has never been recorded before in reunified Germany,” the national statistics office, Destatis, said.

The main reason for the higher-than-expected growth was strong exports, helped by a weaker euro.

The eurozone economy grew by 1% during the quarter.

This compares with growth of 0.2% in the first three months of the year, the area’s official statistics agency, Eurostat, said.

The French economy grew by 0.6% in the second quarter, also up from 0.2%, while the Spanish economy grew by 0.2%, compared with 0.1% in the previous three months.

The pace of growth in the Italian economy remained the same, at 0.4%.

Continue Reading: http://www.bbc.co.uk/news/business-10962017