Members of the Central Bank of Iceland's monetary policy committee decided unanimously to cut the key policy rate by a full percentage point to 17% but resisted a steeper move owing to caution about the impact on the currency, the minutes for the 17 and 18 March meeting reveal.

The minutes said that members preferred a relatively small cut and argued that the easing cycle should begin with caution due to the great uncertainty concerning the currency market's reaction to an interest rate cut. The