Iceland dismisses IMF advice and cuts

The Central Bank of Iceland's rate-setting board cut its key rate by a percentage point on Thursday despite the International Monetary Fund (IMF) last week supporting a "firm" monetary stance.

The central bank's Monetary Policy Committee cut the policy rate to 12% just eight days after the IMF told Iceland: "[Capital] controls should be enforced in the interim, but since there are margins for avoidance that are difficult to eliminate, preserving currency stability will continue to require a f