Israel cuts to record low, economy to shrink

The Bank of Israel slashed its key rate by 75 basis points to an all-time low of 1% on Monday and said that it now expected the economy to contract by 0.2% in 2009.

The cut, which is the sixth since October, surprised analysts who had largely expected a half-point cut. But the central bank, which had previously forecast growth of 1.5% for 2009, said that the degree to which the slowdown had intensified warranted more aggressive action.

"The reduction will help strengthen the economy's ability to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.