Daily Israel Report
16:44
Reported

News Brief

  12/25/2012, Tevet 12, 5773

Fischer: Lower Interest Rate Meant to Encourage Demand


Governor of the Bank of Israel Stanley Fischer commented for the first time, at a Finance Committee session Tuesday, on the surprise decision yesterday to cut the central bank's interest rate by 0.25%, saying, "We are seeing a slowdown, though not great, in economic growth, industrial output, and in exports, which are not growing rapidly. We don't see ourselves getting into a recession, but in order to encourage demand, we lowered the interest rate. We want to give a push to growth, and that is what we did… We are waiting to see what happens with the US and the fiscal cliff. Meanwhile, the global economy is problematic, the volume of world trade has fallen, and that is not good for the Israeli economy."