The Israeli governor of the Bank of Israel is not upholding the government's decisions with respect to inflation, according to Finance Minister Avraham Shochat.
Shochat, who is in Prague to attend the annual meeting of the International Monetary Fund, was quoted by Ha'aretz on Monday as saying "the government declared that the inflation target in 2001 would be between 2.5 and 3.5 percent. Now we see that in the past 12 months, inflation has been just 1 percent and we also know that inflation expectations are around 2 percent for the coming two years.”
According to Shochat, "the conclusion is that the interest rate Klein is upholding and the slow pace of cutting the interest rate are not consistent with the government's decisions." - Albawaba.com
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