Stanley Fischer 311.
(photo credit: Bloomberg)
Bank of Israel Governor Prof. Stanley Fischer has told the Wall Street Journal
that the Israeli economy “is doing very well,” and that he would not be
surprised if “we grew faster than” the current first quarter growth forecast,
which the bank recently raised from 3.8 percent to 4.5%.
A large part of
Fischer’s interview was devoted to foreign exchange rates and he told the
newspaper that “the bank hopes the need for intervention in foreign exchange
markets will be minimal,” adding, “It [the central bank] is prepared to
intervene if the shekel’s value isn’t appropriate.”
acknowledged the bank’s willingness to accept a stronger shekel, pointing to
interest rate hikes earlier this year and to the currency’s recent
However, he declined to comment on the US Federal Reserve’s
quantitative easing program, and said, “I’m sure when interest rate
relationships return to normal, which is not going to happen overnight, then
because of capital flows, exchange rates will adjust.”
was upbeat on the Israeli economy, he admitted that regional uncertainties cast
a cloud over the future.
“It’s a promising outlook, but we know we live
in an uncertain world so you have to stay on your guard all the time,” he said.
“There is a lot more uncertainty than there used to be.We’ve got to be prepared
for a greater variety of scenarios.”
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