A Bloomberg poll has found that 19 of 21 analysts believe that Governor of the Bank of Israel Prof. Stanley Fischer will keep the interest rate for October unchanged at 3.25 percent. Bank of America Merrill Lynch and DS Brokerage believe that he will cut the interest rate to 3%.
The Bank of Israel will announce the interest rate for October on Monday evening. Psagot Investment House Ltd. analyst Ori Greenfeld told Bloomberg, "The central bank will prefer to hold borrowing costs at tomorrow’s meeting after the bank lowered its growth forecast for the local economy. The market is looking for direction today as there is uncertainty about the global economic recovery and inflation prospects."