Iceland’s central bank lowers interest rates by 2.5 percentage points to 13 percent

Iceland cuts interest rates to 13 percent

LONDON — Iceland’s central bank has cut official interest rates by 2.5 percentage points to 13 percent to help the country’s troubled economy.

It is the third cut in rates this year by the central bank, called Sedlabanki. The central bank has indicated a series of trims is likely, saying earlier this year that “cautious easing” of monetary policy to help its recession-struck economy was appropriate.

The bank says it will provide a full explanation of the latest cut later Wednesday.

Iceland is struggling to get its economy back on its feet after its banking system collapsed in October and the government sought a $10 billion International Monetary Fund-led bailout.