Bank of Israel Cuts Key Rate for Eighth Time

March 23, 2009

Somewhat unexpectedly, the Bank of Israel, which had already reduced its benchmark rate seven times to 0.75% from 4.25% prior to October 7th, announced a 25-basis point further reduction to 0.5%.  The statement released by monetary authorities gave familiar reasons for the cut: weakening domestic and global growth prospects, a credit crunch, downward-trending inflation, and similar monetary relief being implemented by many other central banks.

There have been two cuts of 75 basis points each on December 29th and January 26th, three of 50 bps on October 7th, November 11, and November 24th, and three of 25 bps on October 27th, February 23rd, and today.

Copyright 2009 Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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