Iceland holds rates at 13.75%

The Central Bank of Iceland has kept rates at 13.75% in spite of a poorer inflation outlook.

The widely-expected decision follows the surprise 45-basis-point hike at the previous meeting at the beginning of November last year.

The depreciation of Iceland's new krona has caused the short-term inflation outlook to worsen since then. But the deterioration of financial market conditions, both domestically and globally, coupled with the rising probability of a more severe housing downturn in the p