Business in Brief

Fischer not expected to raise July interest

Yaron Angel
Moti Kimche

Bank of Israel Governor Stanley Fischer is not expected to raise interest rates for the month of July due to the uncertainty facing the Israeli economy, say analysts. He is due to announce July's interest rate tomorrow. Fischer raised the central bank's interest rate by 0.25% last month, setting it at 3.25%, and he's likely to wait before raising it again - at least until the end of July, most analysts at banks and investment houses agreed. Another rate increase could further strengthen the shekel vis-a-vis foreign currencies including the dollar, which damages Israeli exports. (Moti Bassok )

Next central bank chief to earn more than PM, president

The next Bank of Israel governor will earn NIS 60,000 a month - more than the president and the prime minister - under a proposal the cabinet is expected to approve at its weekly meeting today. That salary won't apply to current governor, Stanley Fischer, at his request. Fischer was earning NIS 40,700 a month as of the beginning of the year. Prime Minister Benjamin Netanyahu is pushing to raise the government to approve the proposal in order to enable the bank to hire another internationally renowned finance professional when Fischer finishes his term. (Moti Bassok )

Cabinet to approve Dr. Karnit Flug as new BoI deputy

Also on the agenda today is a new deputy for Bank of Israel Governor Stanley Fischer: The cabinet is expected to approve the appointment of Dr. Karnit Flug, 56, currently head of the central bank's research department. Since the deputy governor earns 90% of what the governor earns, Flug will be taking home NIS 54,483 a month if the proposal to raise the Fischer's successor's salary passes - significantly more than her boss's salary. (Moti Bassok )