Stanley Fischer 311.
(photo credit: Bloomberg)
Most analysts believe that Bank of Israel Governor Stanley Fischer will keep the
interest rate for August unchanged at 3.25 percent on Monday.
Capital Markets analyst Rafi Gozlan said, “We expect the Bank of Israel to keep
the interest rate unchanged, but, a scenario of global economic recovery in the
second half of the year, and the narrowing of the GDP gap and high inflation
environment in Israel, will result in interest rate hikes to bring the rate to
3.75 percent by the end of the year.
“Inflation will stay high over the
next 12 months, at 3.6%.”
Clal Forex said, “We expect the Bank of Israel
to keep the interest rate unchanged at 3.25%. Another interest rate hike is
liable to increase sale pressure on the dollar, pushing the shekel-dollar
exchange rate down to the psychological level of NIS 3.30/$.”
The Bank of
Jerusalem said, “Rising inflation and media pressure over rising prices
(electricity, fuel, food, and, most of all, housing), are pushing Fischer into a
corner where he does not want to go so quickly. We believe that he will raise
the interest rate by 25 basis points, mainly because of the pressure of
17 of the 18 analysts in a Bloomberg survey predict no change in
the interest rate.
The exception is Excellence Nessuah, which predicts a
25 basis point hike to 3.5%.
Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>