Iceland raises rates again

The Central Bank of Iceland hiked rates by half a point on Thursday. The move follows an emergency 125 basis point rise a fortnight ago.

The hike, which leaves rates at 15.5%, means Iceland has leapfrogged Turkey as the country with the highest central bank borrowing costs in Europe.

The central bank said burgeoning inflation expectations necessitated a further hike.

Inflation expectations "are now higher than they have been in a long time," the central bank said, adding that "it is imperative

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