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08.09.2011
 
Meeting of the Senior Monetary Forum of the Bank of Israel with financial forecasters
 
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The Senior Monetary Forum of the Bank of Israel, headed by the Governor of the Bank of Israel, today held its quarterly meeting with a group of forecasters, who provide the Bank of Israel with current forecasts on inflation, the interest rate, and exchange rates. The meeting serves as an exchange of ideas and assessments between the Bank of Israel and important financial institutions in the market.
At the meeting, the Governor provided his impressions from the symposium he attended at Jackson Hole, Wyoming, which dealt with the global economy. The Governor explained that based on second quarter data, and data expected for the third quarter, there is a slowdown in global growth, though at this point it does not appear that the global economy is in a recession, and it is possible that a global recession can in the end be avoided.
Regarding Israel's economy, the Governor said that the government will have to decide how to relate to recommendations that will be brought by the Trajtenberg Committee for socio economic change, and emphasized the importance of staying within the budgetary framework. It was emphasized that geopolitical events expected this month and the crisis with Turkey pose risks to the economy in the coming period.
Additionally, Bank of Israel Research Department economist Alon Binyamini presented the department's forecasts, which were published in the most recent interest rate decision, as well as the process by which the Research Department Staff Forecast, which includes forecasts of macroeconomic data, is reached.
The forecasters offered their responses and provided their assessments of developments.