BoI Law Passes First Reading in Knesset

The new Bank of Israel law passed its first of three readings into law yesterday in the Knesset plenum. Twenty-two Knesset members voted in favor of the bill and two gave it the thumbs-down: Ilan Gilon of Meretz and Dov Khenin of Hadash. "The new Bank of Israel law is good for the Bank of Israel, and it's also right for the treasury of the State of Israel," commented Finance Minister Yuval Steinitz, who presented the bill before the Knesset.

Under the bill, the governor of the central bank wouldn't be making monetary decisions alone any more. There would be a monetary council with three public representatives appointed by the government, alongside three Bank of Israel officials. In case of deadlock, the governor's vote prevails.