The Governor of the Bank of Israel, Stanley Fischer, is expected to announce tomorrow that he is lowering interest rates for June by 0.25 percent to 3.5 percent. This would make Israeli rates 1.75 percent lower than those of the U.S. Federal Reserve for the first time in history.
Fischer lowered rates last month by 0.25 percent and most forecasts expect the same again, although some voices predict that he will wait to see whether the dollar changes direction and what inflation holds in store. In addition, some analysts say Fischer has learned that lowering interest rates is no longer an effective tool.
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