Iceland's interest rate up to 18% Logo of Iceland's central bank Iceland's central bank cut rates less than two weeks ago Iceland's central bank has raised its key interest rate to 18% from 12% as the country battles against a complete financial collapse. The increase comes less than two weeks after it cut rates from 15.5%. News of the rise came as Iceland's prime minister said the country needed another $4bn (£2.6bn) in loans. Iceland has been struggling to avoid collapse since it was forced to take over its three biggest banks, which had been hit by the credit crunch. The prime minister made his comments on the sidelines of a meeting with other Nordic countries. "It's not a precise number, it's not a scientific number but we are looking in that neighbourhood," Geir Haarde said. Mr Haarde would not say how much of the additional money he was hoping to borrow from the other Nordic countries: Sweden, Finland, Norway and Denmark. "I do not want to put pressure on them," he said. The country has already agreed a $2bn loan from the International Monetary Fund (IMF). Iceland's central bank will explain its decision in a statement due at about 1100 GMT. http://news.bbc.co.uk/2/hi/business/7694785.stm