Bank of Israel head Professor Stanley Fischer announced Monday night that Israel would cut interest rates by 0.5 percent.  The cut brings the rate to 3.25 percent, the lowest interest rate since 2001.

Analysts had expected Fischer to cut the interest rate by at least 0.25 percent in order to encourage economic activity.  The expected cut caused the United States dollar to strengthen vis-à-vis the shekel following drops in the exchange rate over the past several months.