Bank of Israel Governor Stanley Fischer decided Thursday to leave interest rates for October unchanged, at 0.75%.
Despite the noted improvement in market trends, the Bank seems inclined to wait for additional signs indicating the economy is recovering from the financial crisis, before ordering an increase which may have a negative effect on the process.
Fischer suffered harsh criticism for raising
September's interest rates from 0.25% to 0.75%. The Bank of Israel was the first central bank in the world to increase interest rates since the onset of the global financial crisis.
With other Western economies facing lesser inflation concerns, Fischer's counterparts seem reluctant to increase their interest rates.
Ben Bernanke, chairman of the US' Federal Reserve, for example, has left interest rates unchanged for the past few months, at 0%-0.25%.
Ori Yehudai, head of the Manufacturers Association of Israel's finance committee and CEO of Frutarom, welcomed the decision saying that, "With the whole world so wary of interest increases, Fischer must be careful. The economy still needs all the help it can get to recover."
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