"Despite the lower-than-expected Consumer Price Index (CPI) in December and signs of an economic slowdown in recent months (falling exports, a plunge in the collection of consumption taxes, etc.), the Bank of Israel will probably keep the interest rate for February unchanged, because of the improvement in the global environment and renewed rise in home prices," says Leader Capital Markets analyst Yonatan Katz, in response to the 0.1% rise in the CPI in December, announced by the Central Bureau of Statistics on Wednesday.
Prico Risk Management and Investments CEO Yossi Fraiman says, "The CPI reflects the slowdown in economic activity, and the drop in prices for furniture and housewares, and culture and entertainment. The demands to lower the cost of living at a time when both export-oriented and domestic-oriented manufacturers are expected to lay off workers, fits in with the assessment that the middle class is vulnerable."
Halman Aldubi Investment House CIO Ilan Artzi says, "The inflation figures prove that there is no inflation problem in Israel, and support keeping the low interest rate in the coming period. This means that, even though the Fed has begun tapering quantitative easing, monetary policy in Israel will continue to be expansionist, especially in view of the continuing strengthening of the shekel."
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014