Bank of Israel to Raise Interest Rate

The Bank of Israel has announced that it was raising interest rates by half a percentage point.

Bank of Israel Governor Jacob Frenkel said that Thursday’s move was necessary to counter public expectations of stepped-up inflation after learning of August’s relatively high cost-of-living rate.

He also blamed inflation fears on growing private consumption and the balance of payments.

Israel’s Chamber of Commerce and other groups criticized his decision, saying that it would not contain inflation.

NEXT STORY