Illustration
Photo: Index Open
October interest rate set at 2%
Bank of Israel rebuffs warning suggesting increasing interest rates may harm exporters, bumps principal interest by 0.25%. Fischer said to be concerned by inflation
Bank of Israel Governor Stanley Fischer has set the principal interest for October at 2% - a 0.25% increase.
Monday's decision reportedly followed deliberations at the Bank of Israel. The latter aims to curb inflation pressures felt mostly by the real estate sector.
Principal interest rates worldwide have remained largely unchanged, and those opposing the move within the Bank said an increase would only draw investors to the shekel and in turn weaken dollar and euro rates and hurt exporters.
Sunday saw Finance Minister Yuval Steinitz speak again a raise in interest rates – a statement the Bank of Israel dismissed as "irrelevant."
The Treasury declined comment on Fischer's decision to raise interest rates.
- Follow Ynetnews on Facebook
