Israeli Central Bank Rate Left at 0.50%

June 22, 2009

For a third straight time, the Bank of Israel made no further change in its key policy rate, which previously was lowered eight times from October through March 23rd by 375 basis points in total to 0.5%.  CPI inflation of 2.8% in now within the 1-3% target range, and real GDP continues to contract, only not as rapidly as it did a few months ago.  Real GDP fell 3.6% saar in 1Q09.  Israel has a fiscal deficit but a current account surplus.  The shekel is around 15% weaker against the dollar than a year ago.  Click here to read today’s statement from Bank of Israel officials.

Copyright Larry Greenberg 2009.


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