Bank of Israel Governor Stanley Fischer announced on Monday he would lower the bank's interest rate to 3.5%. The 0.25% reduction is in light of the ongoing global market crisis. Fischer's move comes two weeks after he unexpectedly lowered the interest rate by 0.5%.
The lowering of inflationary pressure was also cited. On Monday, the price of a barrel of oil reached a 17-month low. Iran's representative to the Organization of Petroleum Exporting Countries says further production cutbacks could result if those announced last week don't stabilize prices.