Bank of Israel cuts key rate 0.2% for December

The Bank of Israel said on Monday it would reduce its key lending rate by 0.2% point to 8.2% effective December 1, the eleventh rate cut in a year. The rate reduction met market expectations, although analysts said future cuts could be jeopardised by continued Israeli-Palestinian unrest. More than 280 people have been killed, most of them Arabs, in two months of violence.

The Bank of Israel has lowered the key lending rate in 11 of the last 13 months for a total of 3.3 percentage points. The c