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The Governor of the Bank of Israel, Stanley Fischer, is expected to lower interest rates for June by 0.25%, to 3.5 percent.

If he does, the interest rate gap between the shekel and dollar will widen to an unprecedented 1.75%.

Fischer lowered rates for May by 0.25%. Most analysts expect the same again, though some voices predict that he will wait to see whether the dollar starts to rebound, and what inflation holds in store.

In addition, some analysts say Fischer has learned that lowering interest rates is no longer an effective tool for taming the shekel, whose strength has been the despair of exporters.