Iceland’s central bank raised interest rates for a third time in seven months to contain inflation after the krona slipped and economic growth picked up. The seven-day collateral lending rate was raised to 5 percent from 4.75 percent, Reykjavik-based Sedlabanki said on its website today. The bank indicated in February it would resume a tightening cycle it halted in December as it seeks to steer Iceland’s recovery and ensure a stable krona as capital controls are unwound. “In the absence of an improvement in the inflation outlook, a further increase in nominal interest rates will probably be required in the near term ... (full story)