News Briefs

  שבט 22, 5768 , 29/01/08

Dollar-Shekel Rate Breaks Below 3.64

The dollar now is trading at 3.633 shekels for the first time in 10 years following the Bank of Israel's decision Monday evening to keep the interest rate unchanged. Bank Governor Prof. Stanley Fischer explained that the expected slowdown in the American economy will reduce inflationary pressure in Israel, precluding the necessity to raise the interest rate to discourage rapid economic growth.

He said the decision also assumes that the American Federal Reserve Bank this week again will cut its prime rate, a move that will makes the shekel more attractive to investors because of the higher interest rate in Israel. Although inflation now is slightly above the maximum target of three percent, Fischer expects it to "return to within the target range in the second half of 2008" and that inflation for the year will be 2.5 percent.

Other archived news briefs:Jan 29 2008, 09:10 AM, 1/29/2008