In the last interest rate announcement, the central bank said: Additional risks persist, particularly the global debt crisis.
The Bank of Israel was not taken by surprise by the latest developments in the Greek crisis. A senior bank official told "Globes", "The Bank of Israel was completely cognizant of the European crisis, and has been responding to it for some time, through its interest rate policy. The crisis in Europe is one of the reasons why the Bank of Israel did not raise the interest rate in a single move - the recovery was not yet completely clear."
In its last interest rate announcement, the Bank of Israel noted the debt crisis in general, and in Greece in particular. "Additional risks persist, particularly the global debt crisis, which became even more severe towards the end of the period, against the background of Greece's debt crisis," it said.
Published by Globes [online], Israel business news - www.globes-online.com - on April 29, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010