The Bank of Israel has lowered the 2013 growth forecast to 3.6% but raised the 2014 growth forecast to 3.4%.
The Bank of Israel today lowered its growth forecast for 2013 from 3.8% to 3.6%. However, at the same time the Bank of Israel raised its growth forecast for 2014 from 3.2% to 3.4%.
The revised predictions were contained in a document forecasting macroeconomic developments compiled by the Bank of Israel's research department, which was presented to the Monetary Committee yesterday during its deliberations prior to today's decision on the interest rate for October 2013. The Monetary Committee decided to lower the interest rate by 25 basis points to 1%.
According to the staff forecast, the inflation rate over the next year (ending in the third quarter of 2014) is expected to be 1.9%. The Bank of Israel interest rate, which was 1.25% when the forecast was compiled, is expected to decline in the final quarter of the year to 1%, and to remain at this level until the middle of 2014, and then to increase to 1.25% before the end of 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2013
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