Bank of Israel surprises with rate cut

|By:, SA News Editor

The Bank of Israel has unexpectedly lowered its benchmark interest rate by a quarter of a percentage point to 0.75%, the first cut in five months.

The BOI cited lower-than-expected inflation, consumer pessimism and "disappointing" U.S. economic data.

"We are not yet close to a recession, but we're moving in that direction," said Rafi Melnick, a member of the BOI's monetary policy committee. "There was certainly the concern of unemployment developing." (PR)

The Tel Aviv 25 is flat.