Iceland Goes Full Volcker

The Icelandic Fed, and yes, there is such a thing, just raised interest rates to 18%.

Iceland’s central bank has raised its key interest rate to 18% from 12% as it battles against financial collapse.
The rise comes less than two weeks after Iceland cut rates from 15.5%.
The central bank governor said the increase was part of its agreement with the International Monetary Fund, from which it borrowed $2bn (£1.3bn).
Iceland’s prime minister said the country needed another $4bn in loans and had approached the European Central Bank and the US Federal Reserve.

Posted by on October 28th, 2008 at 11:52 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.