Israel's Barak backs cautious monetary policy

Prime Minister Ehud Barak said on Jan. 25, 2001, he supports the Bank of Israel's cautious interest rate policy despite calls from the business sector for sharper rate cuts. "I think this (Alan) Greenspan type of cautious, carefully weighed policy of the Bank of Israel, if not stretched to the absurd, is correct," Barak said, referring to the U.S. Federal Reserve chief.

Barak made the remarks at a gathering of Israeli businessmen less than two weeks before an election for prime minister. Infla