Iceland central bank cuts key interest rate again

STOCKHOLM Wed Nov 3, 2010 5:02am EDT

STOCKHOLM Nov 3 (Reuters) - Iceland's central bank cut its key interest rate by 75 basis points to 5.50 percent on Wednesday as it continued down a path of monetary easing to support the crisis-hit economy.

Analysts had expected the central bank to cut rates. The Sedlabanki also said it was cutting its deposit rate to 4.00 percent from 4.75 percent.

The Sedlabanki has loosened monetary policy gradually over the past several quarters from a record 18 percent last year as the North Atlantic island recovers from the collapse of its banks in late 2008.