Klein defends rate rise, attacks gov't policy

ISRAEL - Bank of Israel Governor David Klein Friday vigorously defended his recent rate hike and accused the government of having little interest in running the economy, reports Dow Jones.

Monday Klein announced he would raise Israel's 3.8% discount rate to 4.4% for March, just two months after he slashed it by 200 basis points. His reasoning, reiterated Friday in a speech before a business conference in Tel Aviv, was that the shekel would have continued sliding without the rise.

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