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Bank of Israel Governor Stanley Fischer. (Archives) Last update - 02:54 25/03/2008 Bank of Israel cuts interest rate to lowest level in history By TheMarker Tags: Economy, Stanley Fischer  Bank of Israel Governor Stanley Fischer on Monday confounded expectations and lowered Israeli interest to a historic low. The prime rate, on which bank loans in Israel are based, drops to 4.75%, after Fischer's half-percent rate cut for April that lowered the central bank interest rate to 3.25%. At the end of the week, the commercial banks will be lowering the interest they charge on overdrafts and loans. Most economic analysts had expected a lesser rate cut of 0.25%, postulating that would suffice to keep prices stable. However, Fischer explained, there are growing expectations of a global economic slowdown, which  however strong Israel's economy would lead to slower economic growth domestically too. That in itelf would dampen inflationary forces: Lower demand for goods that Israel exports would in turn lower domestic demand. Prices could be kept stable at a lower level of interest, and lower interest in turn would stimulate economic growth by making it easier for businesses to borrow, the central bank concluded. Advertisement Related articles: In surprise move, Fischer to increase foreign currency reserves Fischer: We will not intervene in dollar trading again without announcing it first Fischer: Bank of Israel to avoid meddling in int'l currency market Bookmark to del.icio.us   Nothing to fear Nasrallah says power of IDF exaggerated, Zionist entity can be wiped out. Sharing the blame Al-Qaida deputy chief calls on Muslims to strike Jews 'everywhere' over Gaza raids.   1.   too soon! 23:22  |  Zalman Y 24/03/08   2.   The US federal reserve is in a state of panic 03:52  |  Mark Lincoln 25/03/08   3.   The Government of the United States 03:55  |  Mark Lincoln 25/03/08   4.   Mr. Lincoln, are you for real? 04:45  |  Itzhak 25/03/08   5.   Bank of Israel cuts interest rate to lowest level in history 07:08  |  Birdi 25/03/08   6.   Israel`s febrile link to America 10:09  |  Clickfool 25/03/08   7.   2/3# Mark Lincoln mad about the `Junta`. 10:46  |  Akram Zekaria 25/03/08   8.   For Akram Zekaria # 7 11:18  |  Clickfool 25/03/08   9.   Lowering B O I interest rates 12:15  |  Mel (M) 25/03/08   10.   8# Clickfool. "all bubble money". 12:25  |  Akram Zekaria 25/03/08

Today Online Bradley Burston: Support Hamas - Do as Israel does Responses: 25 Yoel Marcus: Golan worth giving away for peace with Syria Responses: 26 Avirama Golan: Bibi's wife versus Spitzer's call girl Responses: 14 Israeli defense sources: Hamas wants to maintain Gaza quiet Responses: 21 Haaretz.com TV: Violence between messianic Jews, Haredim on the rise Responses: 12 Rosner's Domain Guest, Kurtzer: US needs to be a 'honest broker' A ceasefire must be clear on the point of rocket fire (WTR) Govt. to appeal ruling on classified material in AIPAC trial There's no need for American pressure on Israel Poll: Mideast summit in Moscow, a good idea? More Headlines 12:26 Report: Saudi King plans interfaith conference including Jews 11:47 Israel to allow PA security forces to deploy in Jenin 08:27 Israeli defense sources: Hamas wants to maintain Gaza quiet 10:18 Chasm in Arab world: Half of its leaders skipping Damascus summit 11:22 Jewish Democrats: Half pro-Clinton, half pro-Obama 11:02 IDF officer moderately injured in blast during training exercise 10:30 Support Hamas - Do as Israel does 11:37 OPINION / If Olympic games were politically correct, only four nations would take part 11:56 Russia-Egypt talks to focus on energy and Mideast peace 11:04 Eritrean ambassador: Jerusalem must repatriate 'deserters' 10:55 ANALYSIS / Nasrallah threatened punishment for Mughniyah, not revenge 10:49 With top rabbis' blessing, Knesset approves organ donation law Previous Editions Select Day 24 mar 23 mar 21 mar 20 mar 19 mar 18 mar 17 mar 16 mar 14 mar 13 mar 12 mar 11 mar

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