A "Bloomberg" poll has found that 19 of 21 analysts believe that Governor of the Bank of Israel Prof. Stanley Fischer will keep the interest rate for October unchanged at 3.25%. Bank of America Merrill Lynch and DS Brokerage believe that he will cut the interest rate to 3%.
The Bank of Israel will announce the interest rate for October tomorrow evening at 5:30 pm.
Psagot Investment House Ltd. analyst Ori Greenfeld told "Bloomberg", "The central bank will prefer to hold borrowing costs at tomorrow’s meeting after the bank lowered its growth forecast for the local economy. The market is looking for direction today as there is uncertainty about the global economic recovery and inflation prospects."
Prico CEO Yossi Frieman said, "The governor will probably make very cautious decisions in the coming months. The CPI for August could put obstacles in the way of the Bank of Israel to cut the interest rate for October, and it will probably keep the interest rate unchanged."
Leumi Capital Markets analyst David Reznik said, "Under normal circumstances, an interest rate cut at the next decision would have been considered in view of the global economic situation. But it seems right now that the Bank of Israel will wait a while, especially in view of the unexpectedly high increase in the CPI in August, which was driven the housing item."
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2011
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