Bank of Israel cuts lending rate by 0.2 pct point

The Bank of Israel said on Feb 26, 2001 it was lowering its key lending rate by 0.2 percentage points to 7.5 percent, its eighth straight monthly reduction and the 14th in the past 16 months. The rate cut widely expected but slightly less than the 0.3 percentage point cut forecast by economists.The Bank of Israel said the latest cut was in response to inflation expectations being below target for the next 12 months.

The central bank said the rate reduction took place despite intermittent work

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