Iceland hikes rates by 600bp to access IMF funds

The Central Bank of Iceland has raised rates by a staggering 600 basis points to 18% to meet the conditions of the International Monetary Fund's (IMF) $2.1 billion loan.

The central bank said that one of the loan conditions was that rates were raised to 18% by the time the agreement was presented to the IMF's Executive Board. The board is due to view the agreement over the next few days.

The collapse of the krona in recent weeks triggered the Fund's calls for the move.

"It is of overarching

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