Corona situation: The Bank of Israel Governor announces a series of new policy measures

 

 

Bank of Israel Governor Prof. Amir Yaron announced this morning that the central bank is taking a series of policy measures to deal with the corona situation and the decisions affecting the economy:

 

“The coronavirus is meeting the economy at a very good place. The strong economic data—including a low debt to GDP ratio and low unemployment rate, a current account surplus, a high level of foreign exchange reserves, and a robust financial system—increase the economy’s resilience to the developments.

 

“The decisions made on various limitations have weighty economic consequences.  Under my leadership, the Bank of Israel is acting to minimize the negative impact to businesses and to the public, so that we can weather this period calmly, with as little economic damage as possible.

 

“Therefore, at my instruction, the Bank of Israel today published a set of policy measures to support the capital markets, assist in the transmission of monetary policy, and make it easier for business and consumer customers of the banking system at this time.

 

“We are prepared for any development, and will continue to take all measures necessary in accordance with various developments.  Monetary policy remains accommodative to support economic activity.  The Bank of Israel, and I as its governor, have a variety of tools to support economic and financial activity in the economy.”

To the message about the banking system in view of the spread of the coronavirus

To the message about the two new monetary instruments​​​