A large fire engulfed Iraq's central bank building in Baghdad, but there were no reports of casualties and the cause of the blaze was unclear, police said.

One bank employee and witnesses said flames ripped through most of the building, which is several floors high.
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The building is surrounded by concrete blast walls in central Baghdad. It is not in the heavily protected Green Zone compound, where key government ministries are located.

The central bank has had a low profile during the upheaval in Iraq since the US-led invasion in 2003.

It announced last week that annual inflation in Iraq had fallen dramatically, hitting 12 per cent in December 2007, compared with 65 per cent a year earlier.