Israel cuts rates by 50 basis points
by Richard Kilner
Story link: Israel cuts rates by 50 basis points
The Bank of Israel has cut interest rates by some 50 basis points, meaning that the rate will be 3.75% with effect from 12 October.
The cut has been made in response to the worsening turmoil in the global financial markets, and is designed to help stave off the negative impact on the Israeli economy.
As the world economy continues to slow, commodity prices are forecast by the central bank to fall, which in turn will have the effect of reducing inflationary pressures.
In addition, there is now a greater chance of a slowdown in Israel’s economy, and a reduced interest rate, it is hoped, will bolster demand and economic activity.
Lastly, the half point rate cut has been made to try and promote liquidity in the financial sector.
Israel’s rate cut comes on the same day as Australia slashed its rates by 100 basis points, with both nations reacting to the dramatic turmoil that has been present in the global financial world for most of September and continues into this month.
Add to Bookmarks:
Related stories to: Israel cuts rates by 50 basis points
Israel cuts interest rates by 25 basis points ...
Israel cuts interest rates by 50 basis points ...Bank of Israel slashes rates by 50 basis points ...
Canada cuts its interest rates by 50 basis points ...
New Zealand cuts OCR by 50 basis points ...
No Comments »No comments yet.
Leave a commentPrevious: « A&L fined £7m for mis-selling PPI
Next: Taxpayer to invest £50bn in High Street banks »
Visited 251 times, 1 so far today