Bank of Israel Lowers Growth Forecast

The Bank of Israel on Monday lowered its forecast for growth in the Israeli economy in 2013. Instead of a projected 3.4% growth rate, the economy is likely to grow only 3%, the Bank said. Six months ago, the Bank had predicted a 3.5% growth rate for 2013.

Inflation is set to rise slightly, the Bank said, with a 2.6% inflation rate predicted for the next 12 months. The previous forecast had predicted a 2.4% increase in prices in the economy. The Bank also said that it expected interest rates to remain  at current rates 12 months from now.