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Interest rate may be cut again despite change of governors.
(From Israel Business Arena)
Byline: Globes correspondent
A further 0.2% interest rate cut for February is certainly on the cards, despite the replacement of governor of the Bank of Israel David Klein. The interest rate decision will be in the hands of Dr. Meir Sokoler, in consultation with governor-designate Prof. Stanley Fischer. The February interest rate is due to be announced on January 24.
Today, the Bank of Israel reported a sharp rise in the money supply in December, of 1.9%. The money supply totaled $39.1 billion at the end of December, NIS 700 million more than at the end of November. In 2004 as a whole, the money supply grew by 18.7%, or …
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