Bank of Israel: No Rate Cut this Month

October 30, 2013

In a statement released Monday, Bank of Israel policymakers noted that the shekel had stopped appreciating and instead eased over the past month.  For this reason and a few others — in-target inflation over the past twelve months, expected in-target inflation over the coming year, reduced interest rate yields with those in advanced economies, and an assumption that Fed tapering doesn’t start before March — the statement defends this month’s decision not to cut Israel’s central bank rate further.  It was cut twice in May by 25 basis points each and at the prior policy meeting on September 23.  Since September 2011, it’s been cut by 225 basis points in all.  GDP is growth at slightly less than 1%.  CPI inflation is targeted between 1% and 3%.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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