Fischer: Free market reforms essential for continued growth

Bank of Israel Governor Stanley Fischer on Thursday said the next government must remain committed to free market reforms and credible fiscal policy to prevent uncertainty in financial markets.

Speaking at the annual conference of the Association of Banks in Israel Fischer said "it is vital that the next government be committed to the same macroeconomic strategy and continued structural reforms that created the conditions for healthy and sustained growth."

"Domestic and foreign investors must be sure even now that this strategy is not at issue, and that everyone is committed to it. And it is important that they should feel that right away," he said.

"We are in a period of political uncertainty, which goes together with economic uncertainty, even if we are talking of a relatively short period of a few months, and it is good that the period of uncertainty should be relatively short."

He said the Bank of Israel will do its part in pursuing interest policies that will keep inflation contained to its target range of 1 to 3 percent a year -- with the intention of reaching the midpoint.

Fischer said that while the issue of poverty - a main theme of the current election campaign - was important to tackle, it must be done "with open eyes...and with a commitment to the strategy of long-term growth."

	Bank of Israel governor Stanley Fischer attending a meeting with Histadrut officials in Tel Aviv last month. (David Bachar)