Israeli Central Bank Rate To Remain at 0.5%

May 25, 2009

The Bank of Israel left monetary unchanged as expected, having earlier cut its key rate from 4.25% at the start of October to 0.5% late in the first quarter.  Monetary officials also are continuing to buy government bonds and dollars to promote liquidity and contain any upward drift in long-term interest rates.  A statement from officials projects negative 1.5% growth in 2009 after observing a drop in 1Q of 3.6% annualized led by declines of 48.5% saar in exports, 37.6% in investment and 4.3% in private consumption. CPI inflation is expected to hover near the middle of a 1-3% target range, buoyed by the impact of planned tax increases and depressed by global and domestic inflation.

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


Comments are closed.