Subscribe to Print Edition | Sun., February 10, 2008 Adar1 4, 5768 | | Israel Time: 16:30 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Advertising Books Arts & Leisure Business Real Estate Easy Start Travel Week's End Anglo File

Last update - 16:27 10/02/2008 Fischer says he'll do everything possible to prevent recession By Moti Bassok and Tal Levy, TheMarker Tags: Bank of Israel, Currency  Bank of Israel Governor Stanley Fischer said Sunday morning he would not intervene in the currency market, but that the Bank of Israel and Finance Ministry would take every measure possible to prevent the Israeli economy from slipping into a recession. Fischer made the comments at an impromptu press conference, which was held in response to a joint Manufacturers Association-Histadrut labor federation proposal calling for the Bank of Israel to lower the interest rate by 0.5 percent, despite Fischer's opposition to such a move. If the governor was to lower interest rates, the shekel would immediately weaken and thus buttress Israel's export sector which has been bruised by the dropping dollar. Advertisement Shraga Brosh, president of Israel's Manufacturers Association and Histadrut labor federation Chairman Ofer Eini plan to collect signatures from dozens of MKs in support of legislation which would force Fischer to factor the status of labor and economic growth into his calculations, which currently focus solely on inflation. Fischer, however, said he believes this is a misguided initiative: "We have to leave the agreements to make changes to monetary policy in the hands of the central bank, and must not transfer this to powerful interest groups in the economy." The central bank governor added: "It needs to be clear that the Bank of Israel vigilantly follows every development in the market and the economy, and will give a monetary response to changing circumstances in order to prevent the Israeli economy from sliding into a recession - if indeed the United States' economy slips into one, after which the global economy will slow down." Fischer said the central bank is tracking developments in export sector's profitability, but did not mention the matter of Israel's interest rate. The economy's "problem," Fischer stated, was the fact that it is in good condition in absolute terms, and in a good ranking in reference with the world. "There is huge flow of capital into the economy by foreign investors and Israelis who are returning their money home. With the economy's current rate of growth, we are passing beyond the definition of a developing economy into that of a developed one. We will see in this process the revaluation of the Shekel against the Dollar and the Euro," The central bank governor said. Related articles: Dollar falls as Fischer says won't intervene in currency market Dankner sees crisis continuing but buys back stock in IDB group companies Dollar slumps 0.5% to NIS 3.578 Bookmark to del.icio.us   Will power Shas Minister Yitzhak Cohen says only a complete Gaza power cut will bring results. The cost of security U.S. estimate: Preparing Palestinian security forces for statehood will cost $7 billion.

Today Online IAF kills top Hamas man; 2 brothers hurt in Sderot Qassam strike Responses: 44 Livni: No hope for Palestinian state while Qassams presist Responses: 28 IDF: Hezbollah Katyushas, missiles back in S. Lebanon Responses: 27 Gaza and Israel - more like partners than enemies Responses: 32 Silvan Shalom: For Israel, sanctions on Iran are best option Responses: 7 Rosner's Domain McCain found a tool with which to woo conservative Republicans: Israel Why many Jewish men go beardless (WTR) New poll: Is it legitimate to cut electricity to Gaza? Factor: How's McCain better than Obama Jewish Republicans? More myth than reality More Headlines 14:58 FM: No Palestinian state possible until rockets stop 15:48 Several Sderot residents clash with police in Jerusalem protest 10:47 IAF kills Hamas man; 2 brothers hurt in Sderot Qassam strike 15:37 McCain found a tool with which to woo conservative Republicans: Israel 11:01 Jewish Agency wages battle to retain monopoly over aliyah 13:29 Palestinian group calls on Egypt FM to apologize to Gazans 16:00 Ex-PM Sharon documentary examines reasons for 2005 Gaza pullout 16:27 Fischer says he'll do everything possible to prevent recession 13:09 Police chief: Officer tried to blackmail me with incriminating video 11:18 IDF says Hezbollah Katyushas, missiles back in S. Lebanon 10:16 Study: Soviet immigrants outperform Israeli students 12:45 Police arrest Nazareth teens suspected of hurling rocks at cars Previous Editions Select Day 08 feb 07 feb 06 feb 05 feb 04 feb 03 feb 01 feb 31 jan 30 jan 29 jan 28 jan 27 jan

Special Offers Advertisement Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. ISRAEL BONDS Build Israel Israel bonds - a multi-purpose way to celebrate Israel's 60th Dead Sea Salt Beauty and skin care from the Dead Sea. Coupon code HAARETZ for 10% off! Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations U.S. CITIZEN IN ISRAEL Register now to vote in national election. Do not wait. Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

© Copyright  Haaretz. All rights reserved