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Foreign Minister wants to curb Bank of Israel independence

Eli Cohen credit: Amit Shabi Yediot Ahronot
Eli Cohen credit: Amit Shabi Yediot Ahronot
21 Feb, 2023 16:35
שלח תגובה במיילOren Dori

Eli Cohen's proposal to Bezalel Smotrich to force the Bank of Israel to stop the rate hikes was dismissed by the Finance Minister as a populist statement.

Minister of Foreign Affairs Eli Cohen has found himself in the international headlines today after a "Bloomberg" article entitled "'Populist' threat to Bank of Israel gets Finance Minister rebuff."

Yesterday Cohen called on Minister of Finance Bezalel Smotrich to intervene in the activities of the Bank of Israel in order that it will halt the rate hikes. He tweeted, "I asked my friend the Minister of Finance Bezalel Smotrich to form a plan against the Bank of Israel Governor to stop the rate hikes. Due to the moderation of inflation, there was no justification in hiking the rate today, which continues the mistreatment of mortgage takers."

Smotrich rejected the proposal, "The independence of Israel’s central bank is fundamental for our strong and innovative economy. As Finance Minister, I stand firmly against populist statements threatening the Bank of Israel’ independence.

Smotrich added, "As a government, we will deliver a budget that invests heavily in infrastructure for economic growth as well as a package of assistance for those truly in need."

This afternoon Prime Minister Benjamin Netanyahu said,  "Under my leadership, The Bank of Israel law that guarantees the independence of the monetary committee headed by the governor in determining the interest rate was passed. Nothing will change it." 

Published by Globes, Israel business news - en.globes.co.il - on February 21, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Eli Cohen credit: Amit Shabi Yediot Ahronot
Eli Cohen credit: Amit Shabi Yediot Ahronot
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