Stanley Fischer, the governor of the Bank of Israel, has raised rates by a quarter point for the second straight month on signs of recovery becoming well entrenched and fears inflation could exceed the upper bound of the target range.
Fischer raised rates last Thursday after announcing the hike on 28 December. The move surprised the majority of economists surveyed by leading media, who largely predicted a hold, though a significant minority expected the move.
In justifying the decision, Fischer,
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