Stanley Fischer - Olivier Pitoussi
Bank of Israel Governor Stanley Fischer. Photo by Olivier Pitoussi
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World economic growth is slowing, but the global economy does not yet seem to be in recession and it is possible such a recession may not happen, Stanley Fischer, the governor of the Bank of Israel said Thursday.

Fischer and the Senior Monetary Forum of the Bank of Israel held their quarterly meeting with a group of economic forecasters, who provide the central bank with current forecasts on inflation, the interest rate and exchange rates.

The meeting serves as an exchange of ideas and assessments between the Bank of Israel and important financial institutions in the market, said the central bank. Because of the sensitive economic situation, the Bank of Israel decided to make an announcement about the meeting and released information on a small number of items discussed.

Fischer provided his impressions from the recent symposium he attended at Jackson Hole, Wyoming, which dealt with the global economy. The governor explained that, based on second quarter data, and data expected for the third quarter, there is a slowdown in global growth.

Regarding Israel's economy, he said that the government will have to decide how to respond to recommendations that will be brought by the Trajtenberg Committee for socioeconomic change, and emphasized the importance of staying within the budgetary framework. It was emphasized that geopolitical events expected this month and the crisis with Turkey pose risks to the economy in the coming period.

The forecasters offered their responses and provided their assessments of developments. Bank of Israel Research Department economist Alon Binyamini presented the department's forecasts, published in the most recent interest rate decision, as well as the process by which they reach their forecasts.