Fischer set to hike interest by 0.25%
Most analysts believe Bank of Israel Governor Stanley Fischer will raise the interest rate for January 2010 by 0.25%, bringing it to 1.25%. It would be the second hike of the base interest rate by that amount in two months. A few analysts believe the head of the central bank will leave interest unchanged at 1.0% for another month and raise it for February.
The main reasons for raising interest are the high consumer price index for November - 0.3% - and the even bigger jump of 0.4% that is expected for December, along with high export figures in recent months. Other contributing factors include the relatively high inflation and low real interest rates.
Like us on Facebook and get articles directly in your news feed