Governor of the Bank of Israel Stanley Fischer said that the BOI has formed a special task force to deal with the economic crisis that is likely to follow an Israeli strike on Iran's nuclear facilities.
"A strike would have dire effects… We are gearing for such a situation," he told Channel 2 news over the weekend.
Speaking of the new economic measures approved by the government this week, which included several tax hikes and a VAT increase, Fischer said that future measures may be still be necessary.
"The market's situation has changed and things have deteriorated rather quickly," he said. "We don't know what will happen in the eurozone – if (the European crisis) turns out to have a snowball effect that we'll have a serious problem on our hands – it will be the same crisis as we had in 2008," Fischer warned.
When asked whether he as governor and the Bank of Israel as the leading financial institution were too complacent in determining the fiscal policies, Fischer said: "The current economic situation is good – not great – and I've said so before.
"We have to give the prime minister and the finance minister the credit they deserve for having the foresight to deal with a looming problem."
The BOI chief added that he is following the soaring housing prices closely and that he does not rule out the possibility that the BOI would have to intervene in some way.
Fischer also dismissed the rumors that he was considering stepping down, as well as rumors that he may run for another office, "Such as that of the finance minister of the president."