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Israeli Central Bank Raises Key Rate Unexpectedly
11/23/2009 8:39 PM ET
(RTTNews) -
The Bank of Israel on Monday raised its benchmark interest rate by 25 basis points to 1.00%. Economists had expected the key rate to be retained at 0.75%.
The central bank cited inflationary concerns as a major reason for the rate hike, and pointed out that the Fed and the ECB had already taken steps towards a gradual exit from the unconventional aspects of monetary policy.
"Israel's economic indicators point to a recovery, but uncertainty persists regarding its strength," the bank said in a statement. "Even after this increase, the interest rate in December will be at the low level of 1.00%, continuing the accommodative monetary policy that is intended to support further economic recovery, particularly in light of the prevailing uncertainty, as well as placing inflation firmly within target range."
by RTT Staff Writer
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