|
|
Article: THE BANK OF ISRAEL REDUCES THE INTEREST RATE FOR MARCH 2009 BY 25 BASIS POINTS TO 0.75 PERCENT
- Article from:
- Info-Prod Research (Middle East)
- Article date:
- February 25, 2009
CopyrightCopyright 2009 Info-Prod Research (Middle East). Provided by ProQuest LLC. (Hide copyright information)
|
The Bank is narrowing the interest rate corridor in the credit
window and the commercial banks' deposit window from 0.5 percent to
0.25 percent. Background conditions: Inflation data: The Consumer
Price Index (CPI) declined by 0.5 percent in January, close to the
average of the forecasters predictions. In the last twelve months
the CPI rose by 3.3 percent, and in the last three months it fell by
1.2 percent. Inflation and interest rate forecasts: Forecasters'
inflation expectations regarding the CPI in February and March are
for a drop of one-tenth of a percent in each. Their forecasts for
twelve months forward on average are for of a rise of 0.7 percent,
while twelve-month expectations ...