By Simon Griver in Jerusalem, August 27, 2009
The Bank of Israel has raised interest rates from 0.5 per cent to 0.75 per cent, becoming the first central bank in the developed world to push up interest rates since the credit crunch began.
Bank of Israel Governor Stanley Fischer said he does not expect others to follow his lead.
“Interest rates in the world’s leading economies will remain unchanged until the end of 2009 and maybe mid-2010. In contrast to Israel, those countries have low inflation.”