Bank of Israel displeased with monetary panel plan

ISRAEL - The Bank of Israel is "not very happy" about government plans to appoint a monetary council to set interest rates, which would end Governor David Klein's position as sole policy maker, a central bank source said.

The Bank of Israel is concerned the decision to establish a council would lead to cuts in interest rates beyond the gradual cuts of about 0.2-0.3 percentage point Klein has made since becoming governor in January 2000.

"The central bank is far from happy with the decision to e