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Hitt og þetta 19. apríl 2006

(IFN) Iceland?s central bank to hike rates by 50-75 bp in May ? Glitnir

London (IFN) Iceland's central bank will raise interest rates by 50-75 basis points from 11.5% on May 18, Glitnir Bank said on Wednesday.

The bank is expecting interest rates to peak at 13%, with cuts no cuts foreseen until 2007.

Glitnir said that it predicts that inlation will peak a 8% by the end of this year, but that the increase will be short-lived and inflation will start to ease in 2007.

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