BREAKING NEWS

Bank of Israel cuts 2012 GDP growth forecast to 3.2 percent

The Bank of Israel has cut its 2012 GDP growth forecast for Israel to 3.2 percent from 3.9%. Its revised GDP growth rate for 2011 is 4.7%.
The Bank of Israel says that growth will slow because of falling demand and lower exports. The Bank of Israel expects exports to grow by just 1.7% in 2012, due to the global economic slowdown and falling foreign trade, and sees imports growing by just 3% in 2012, far lower than in recent years.The Bank of Israel sees 2.3% inflation over the next 12 months, the middle of the government's target range, and below 3.4% inflation for the past 10 months alone.
The Bank of Israel expects the interest rate to be 3% in 12 months time, down from the current level of 3.25%, and lower than its previous prediction of 4% in 2012.
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