Bank of Israel responds to criticism over high rates
Chair of parliamentary committee had blamed tight policy for lenders’ excess profits
The Bank of Israel has defended its actions following criticism from the chair of a parliamentary committee.
Moshe Gafni, a member of the Knesset (parliament) and chair of its finance committee, said on March 4 that the high rates set by the bank had enabled lenders to accumulate excess profits. These, he said, had been amassed at a time when restrictions caused by the wars in Gaza and Lebanon meant many Israelis were struggling to make ends meet.
In its response to Gafni, seen by Central Banking
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