The Bank of Israel says it has lowered interest rates by a half percent amid fears of a looming recession. In a statement, the bank said it made the unexpected move to reduce rates to 3 percent "in light of new information that has become available." It didn't specify what the new information is. Last month the bank cut rates by a quarter of a percent. The bank said Tuesday that "Israeli forecasters have revised their inflation predictions downward." Israel's banking industry has not suffered the same problems faced by its larger counterparts in the US and Europe, but the government is concerned a recession will reach Israel. The cuts are to take effect on Friday, the bank said.