REYKJAVIK (AFP) - Iceland's central bank said Wednesday it had cut its key interest rate by 1.0 percentage point to 4.5 percent, its eighth reduction this year.

It also lowered the deposit rate by 0.5 percentage points to 3.5 percent, the maximum bid rate for 28-day certificates of deposit and the seven-day collateralised rate by 1.0 percent to 4.25 and 4.5 percent respectively and the overnight lending rate 1.5 percentage points to 5.5 percent.

As is its habit, the Sedlabanki gave no immediate reason for its decision but said it would provide more information later in the day.

Since Iceland's massive financial and economic crisis in late 2008, when the main interest rate soared as high as 18 percent, the central bank has progressively reduced borrowing costs in an attempt to get the country's economy moving again.

The Icelandic economy officially emerged from recession on Tuesday, growing 1.2 percent in the third quarter.

The bank has lowered its key rate eight times this year. It last lowered it on November 3, by 0.75 points to 5.5 percent.