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Stanley Fischer
Photo: Gil Yohanan

Fischer: Social protest contributed to recession

Bank of Israel governor says protest was contributing factor in drop in growth as Israeli consumer 'did not want to spend too much money'

The social protest contributed to the recession and the drop in growth, Bank of Israel Governor Stanley Fischer said Wednesday. "The Israeli consumer did not want to spend too much money," he added.

 

Speaking at the Knesset's Finance Committee, Fischer also addressed the crisis in Europe. "We are preparing for the possibility that the Euro zone will collapse but I don't see this risk as very likely," he said.

 

The Bank of Israel governor explained that the real estate market is still in bad shape, as more apartments become available but are not being sold. "Giving contractors better credit won't help reduce prices," he remarked.

 

Fischer also said that ways must be found to pressure the banks into reducing their commissions and interest rates, without harming their stability.

 

"It is the Bank of Israel's duty to make sure they don't take on risks that are too big," he said.

 

"It's hard to say that bank workers make a lot of money. True, one of two banks offer high salaries, but the average is not high."

 

 


פרסום ראשון: 05.02.12, 13:12
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