BOI’s Fischer Doesn’t Rule Out Further Rate Cuts
Written by: Aaron Katsman | March 4, 2009
It looks like Bank of Israel head Stanley Fischer, may resort to another round of rate cuts, as he attempts to navigate the Israeli economy through the global economic abyss. While most pundits thought that he was done cutting interest rates, yesterday, Fischer hinted that more rate cuts were on the way.
According to Globes: “Governor of the Bank of Israel Prof. Stanley Fischer today declared, “We’re examining further interest rate cuts.” The announcement contrasts with the message implied in last month’s interest rate decision that no new interest rate cuts were likely for the time being. He made the comment at today’s Atnachta Conference in Jerusalem. Fischer added, “We must work fully with the Ministry of Finance to formulate economic policy. It’s important to remember that we have one patient, the economy, and we’re not two different doctors each offering his own medicine without coordinating with the other. We will coordinate and continue to work together. I hope that we will win.”
Without a functioning government, it’s up to Fischer to set policy to help Israel deal with the global economic crisis. There is no question that while growth in Israel has gone negative, the fundamentals of the economy are far better than those of most western countries.
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Tikva and Modiin, both with yearly price gains of over 20%.