web analytics
February 22, 2017 / 26 Shevat, 5777

Posts Tagged ‘BOI’

Bank of Israel Keeps Interest Rate Unchanged for January 2017

27 Kislev 5777 – December 26, 2016

The Bank of Israel has announced the interest rate for January 2017 will remain unchanged at 0.1 percent.

The BOI wrote in its report that the decision to keep the interest rate for January 2017 unchanged at 0.1 percent is consistent with the Bank’s monetary policy, which is intended to return the inflation rate to within the price stability target range of 1–3 percent a year, and to support growth while maintaining financial stability. “The Monetary Committee continues to assess that in view of the inflation environment, and of developments in the global economy, in the exchange rate, as well as in monetary policies of major central banks, monetary policy will remain accommodative for a considerable time,” the report said.

The Consumer Price Index for November declined by 0.4 percent, more than forecasters’ predictions of a 0.1 percent decline, on average, according to the BOI report. The decline is partly explained by a seasonal decline in the fruit and vegetables component of 4.3 percent, which was large compared with the decline in recent years, and a seasonal increase of 1.5 percent in the clothing and footwear component that was low compared with the increase in recent years. The inflation rate as measured by the change in the CPI over the past 12 months was -0.3 percent, similar to the figure for last month.

One-year term inflation expectations were impacted by the surprise in the CPI for November. Inflation expectations derived from the capital market increased slightly, to 0.6 percent, and the average of private forecasters’ projections declined slightly to 0.6 percent. Expectations for inflation derived from banks’ internal interest rates increased slightly, after half a year of stability, to 0.4 percent. Forward expectations for medium and long terms fluctuated as well—they increased following the US elections and declined after the publication of the November CPI.

The picture of real economic activity remains positive, and various indicators point to a stable rate of growth. Foreign trade trend data indicate growth in imports, and contraction of exports due to a temporary slowdown in exports of electronic components. Goods exports excluding electronic components reached $3.5 billion in November (seasonally adjusted), and are high relative to their level in the recent period. The Purchasing Managers Index and Consumer Confidence Indices compiled by the Central Bureau of Statistics and by Bank Hapoalim increased in November, with the latter at a six-year high.

For information on the status of the labor market, budget data, staff forecast, foreign exchange market, capital and money market, the money supply, the credit market, the housing market, and the global economy, click here.

Bank of Israel: No Changes in Interest Rate for December

28 Heshvan 5777 – November 28, 2016

The Bank of Israel announced Monday (Nov. 28) that the interest rate for December will once again remain unchanged at 0.1 percent.

The announcement came as welcome news for Israelis seeking to purchase homes for the first times, or those who are refinancing their homes.

The monthly economic report by the BOI Monetary Committee noted there was a seasonal decline of 0.3 percent in the housing component of the Consumer Price Index for October, which increased by 0.2 percent, “slightly more than the forecasters’ predictions of 0.1 percent, on average.”

The inflation rate as measured by the change in the CPI over the past 12 months was -0.3 percent, according to the report.

The employment picture is also positive, reported BOI. “Labor Force Survey data for October for the prime working ages (25–64) continue to show a high labor force participation rate (80.1 percent) and employment rate (76.9 percent), and a low unemployment rate (3.9 percent), while the job vacancy rate remains high, at 3.7 percent (seasonally adjusted).

“The number of employee posts increased in August by 0.25 percent, and has increased by 3.0 percent in the past 12 months. Real wages, which have been in an upward trend in the past two years, increased by 0.5 percent (seasonally adjusted) in June–August compared with the preceding three months, and nominal wages increased by a similar rate. Health tax receipts for August–October were 6.25 percent higher (in nominal terms) than in the corresponding period in the year before, reflecting the continued increase in employment and wages.”

Stanley Fischer Confirmed as US Fed’s No. 2

1 Iyyar 5774 – May 1, 2014

Former Bank of Israel Governor Stanley Fischer is back in the United States.

Fischer has just been confirmed by the U.S. Senate Banking Committee to become the Vice Chairman of the powerful Federal Reserve Board, serving as the Fed’s number 2 after Fed Chairwoman Janet Yellen.

The unanimous vote came Tuesday along with approvals for the appointment of Under Secretary of the Treasury for International Affairs, Lael Brainard, and Fed Governor Jerome Powell, for another term.

Fischer served as the Governor of the Bank of Israel from May 2005 until June 2013.

He came to Israel from his position as Vice Chairman of Citigroup, and President of Citigroup International.

Fischer also served as First Deputy Managing Director of the International Monetary Fund, and Vice President, Development Economics and Chief Economist at the World Bank.

He was born in Zambia in 1943, received his Bachelor of Science degree in Economics at the London School of Economics and his PhD in economics at MIT.  Fischer held various positions as a professor, including one as a visiting professor at the Hebrew University in Jerusalem.

BOI Governor Might be Named after Yom Kippur

8 Tishri 5774 – September 12, 2013

Following the fiascoes where Netanyahu’s preferred choices for Bank of Israel governors were disqualified or pulled out, after outside forces put pressure on them and exposed some old histories, the Turkel Committee vetted and approved three new candidates for the job, according to Globes.

Retired judge, Yaakov Turkel, called Prime Minister Netanyahu on Wednesday, and informed him that there were no moral or ethical impediments for any of the three current candidates to get the job. The committee reviewed many complaints against all three, by their various critics and detractors.

Netanyahu is expected to announce his choice, either right before, or right after Yom Kippur.

Netanyahu’s preferred candidate is Professor Mario Blejer. He is a former Governor of the Argentine Central Bank. Blejer has a Ph.D. from the University of Chicago, a school which Netanyahu highly admires.

Candidate number two is Professor Zvi Eckstein, the Dean of the Faculty of Economics at the Herzliya Interdisciplinary Center (IDC) and a former Deputy Governor of the Bank of Israel under former Bank of Israeli governor Stanley Fischer. Fischer did not back Eckstein’s candidacy.

Candidate number three is Victor Medina. He was also a Deputy Governor of the Bank of Israel.

Printed from: http://www.jewishpress.com/news/breaking-news/boi-governor-might-be-named-after-yom-kippur/2013/09/12/

Scan this QR code to visit this page online: