HSBC analyst Jonathan Katz told "Bloomberg" that the Bank of Israel wants to drive home the message that they are determined not to let the shekel appreciate excessively.
Bank of Israel Governor Stanley Fischer could be set to cut the interest rate for the second time this month HSBC analyst Jonathan Katz told "Bloomberg.". Last week, the Bank of Israel unexpectedly cut the interest rate 25 basis points to 1.5% - a three-year low.
Interviewed by "Bloomberg" he said that the monetary policy committee may surprise investors again as soon as next week with another cut of 25 basis points to 1.25% to drive home the message that they are determined not to let the shekel appreciate excessively. The Bank of Israel will set the interest rate for June on May 27.
“There are no concerns regarding inflationary pressures,” Katz said. “The global environment is looking soft, and we’ve had a global loosening cycle. And if they don’t cut, the shekel will react.”
Published by Globes [online], Israel business news - www.globes-online.com - on May 19, 2013
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