Just as Icelandic investors thought the country’s interest rates could not get any higher, the central bank raised them to a European high of 15.5 per cent. Spencer Anderson investigates what lies ahead

With the country’s interest rates giving many global commentators vertigo and an ever-weakening Icelandic krona, there are tough decisions ahead for the Central Bank of Iceland as it faces increasing calls for change. But will any state interest rate reductions come too late to stablise the economy and how can Iceland ensure its financial leaders are not just papering over the cracks? Spencer Anderson reports.

In spite of its tiny population, Iceland’s pension system boasts a number of multi-billion euro funds, which follow strict government investment guidelines. However, there are signs that the regulator may adopt a more tolerant attitude to risk, writes Thomas Escritt.

Iceland’s central bank must regain trust in the battle to beat inflation, argues the OECD in its latest review of the country’s economic fortunes. Stephen Bouvier reports.

While many outside observers have made gloomy assessments of Iceland’s economy, local investors have benefitted from the krona’s fall. Stephen Bouvier reports

With a 22.6 per cent overall rate of return (17.8 per cent real) it is really not surprising that Tryggvi Tryggvason, chief investment officer of Iceland’s Gildi pension fund, is feeling pretty pleased at the moment.

In comparison to its Nordic neighbours, the rate of early retirement in Iceland remains very low. Stephen Bouvier tracks the history of the disincentives for retirement, and how the developing pensions system and tide of older workers may stimulate the creation of early retirement vehicles in the future.