Central Banking

Update, B of Israel's Monetary Program, 9 June

PRESS RELEASE - The Bank of Israel today announced an update of its monetary program for June 2002, according to which its interest rate will be raised by 1.5 percent to 7.1 percent. The change will go into effect on Tuesday, 11 June 2002. Thus, the overall interest-rate hike in June amounts to 2.5 percent.

The Bank of Israel explains that in the last few months there has been a rise in inflation expectations for a year ahead, and for some time now this has deviated from the upper limit of the

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