Meeting of the Monetary Committee with financial forecasters

Meeting of the Monetary Committee with financial forecasters
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The Bank of Israel's Monetary Committee, chaired by the Governor, today held its quarterly meeting with a group of forecasters who on a regular basis provide the Bank of Israel with 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 spoke about events in Europe, and of the fact that most figures published recently regarding the US economy were relatively positive, so that apparently there is some improvement in the US economy. Regarding China, the Governor said that a slowdown is beginning to appear in the high growth rate there. In terms of Israel, the Governor emphasized that should there be a need to increase the defense budget, it should not be funded through an increase in the deficit.
The Governor discussed the Research Department forecast of macroeconomic figures for 2012, which was published this week with the notice of the interest rate decision. Additionally, Bank of Israel Research Department economist Ms. Irit Rozenshtrom presented the forecasts, as well as the process by which the Research Department Staff Forecast is constructed.
The forecasters offered their responses and provided their assessments of developments.