Iceland raises rates as economy heats up under krona curbs
LONDON: Iceland's central bank raised its benchmark interest rate for a second time since June as it moves to counter the threat of overheating after seven years of capital controls. The collateral lending rate was raised to 6.25 percent from 5.75 percent, the Reykjavik-based lender said on Wednesday. The decision follows a 50 basis-point increase in June. Iceland is trying to prevent imbalances in its economy, which has existed inside capital controls since its financial system collapsed at the end of 2008.