Skip to comments.Welcome To The Party, Pal! Bank of Israel Cuts Interest Rate to 1.5% (512th CB Rate Cut)
Posted on 05/13/2013 10:02:57 AM PDT by whitedog57
Bank of Israel cuts their interest rate to 1.5% in surprise move. Its only a surprise if you havent been watching Central Banks around the world.
The Bank of Israel, led by Governor Stanley Fischer, lowered the lending rate by a quarter of a percentage point to 1.5 percent, sending the shekel down the most since January. The bank said the steps were in light of the continued appreciation of the shekel, taking into account the start of natural gas production from the Tamar gas field, interest rate reductions by many central banks notably the European Central Bank, the quantitative easing in major economies worldwide and the downward revision in global growth forecasts.
Here is the downward shift in the Israeli sovereign yield curve from one month ago.
Today, we have seen double digit basis point increases in Greece, The Ukraine, Russia, Slovenia and Turkey (dollar denominated). Israels 10 year sovereign yield fell only 2 basis points.0
This makes the 512th interest rate cut by a Central Bank since June 2007.
Israeli PM convenes meeting on defense budget cuts
Xinhua, May 13, 2013
For their part, the treasury's officials argue that the threats to Israel's security have decreased, citing a new hi-tech barrier built along the border with Egypt's Sinai and most Arab governments' preoccupation with their domestic issues.
The planned 2013-2014 budget, which is due for cabinet debate on Monday, is also expected to raise workers' income tax by 1.5 percent while increasing Value-Added Tax (VAT) from 17 percent to 18 percent.
so I’m wondering how to refinance my home with the BoI?