Tension growing over Israel central bank policy

- Central Banking staff
- 27 Aug 2003

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The Bank of Israel cut interest rates this week to 6.5 percent but Benjamin Netanyahu, the finance minister, has called Israel's high interest rate policy a "cement shoe" preventing growth. He proposed appointing an advisory panel composed of banking chiefs and former Finance Ministry officials, who share his criticism of Mr Klein, the Financial Times reported.

Source: Financial Times

Israeli policymakers struggling to turn the economy around after two years of recession are placing growing

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