Recent Economic Developments, 126

15/02/2010
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 126

Overview:

Israel’s economic recovery from the crisis began in the second quarter of 2009 and gained strength in the period under review, September to December 2009. Exports expanded rapidly, domestic demand increased, and the labor market revived. That said, developments in Israel depend on the pace of the global exit from the recession. The growth in activity in Israel and expectations that it would continue resulted in stronger inflationary pressures and a rise in inflation expectations. Against this background, and in light of the need to persist with an expansionary policy supportive of economic activity, the Bank of Israel increased the interest rate slightly, to 1.0 percent, in the period reviewed, and the rate for January to 1.25 percent.

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