Iceland’s Central Bank Lowers Benchmark Rate to 13%

Iceland’s central bank lowered the benchmark interest rate by 2.5 percentage points as the severest recession in more than half a century undermines demand and eases price growth.

Policy makers lowered the repo rate to 13 percent from 15.5 percent, Reykjavik-based Sedlabanki said on its Web site today. The rate cut is the third since the island received a $5.1 billion International Monetary Fund-led bailout in November.

“The Monetary Policy Committee expects that another significant adjustment of the policy rate can be made following the June MPC meeting,” the bank said in a statement. Read more about Iceland’s central bank…