Israeli central bank cuts rates to lowest in four decades
The Israeli central bank said Tuesday it has cut its key lending rate for October by 0.3 percentage points to 8.6 percent, the lowest since the mid-1960s.
The bank said the reduction was in line with the government's inflation target of 2.5 to 3.5 percent for 2001, and two to three percent for the following year, a range it has projected for the next seven years.
It follows the release of figures earlier this month showing that the consumer price index dropped 0.6 percent in August, bringing the annual inflation rate to its lowest level in 33 years.
According to forecasts in the government's $50 billion budget for next year, economic growth is expected to reach 4.5 percent next year, up from an estimate of four percent for 2000.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)