Wednesday, August 12, 2009

State of the Israel economy and interest rates

Inflationary expectations for the next 12 months, as reflected in the capital market at the beginning of July, stand at 2.8%,
at the upper limit of the Government's inflation target for the year (which was from 1% to 3%).
As a result, the effective real annual interest on Bank of Israel sources is negative, at the rate of 2.5%.

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