"There is a slowdown in the global economy, but we're not seeing a global recession at this stage, and it is possible that a global recession can in the end be avoided," Governor of the Bank of Israel Prof. Stanley Fischer told the senior monetary committee today, at its fourth meeting.
Fischer based his assessment on second quarter data, and data expected for the third quarter as well as his impressions from the symposium for global economic leaders at Jackson Hole, Wyoming at the end of August.
Fischer is also worried about the Trajtenberg committee and calls for increasing the budget deficit, saying that it was very important to keep the budget framework. "The geopolitical events expected this month and the crisis with Turkey are risk factors for Israel's short-term economic development."
Bank of Israel economist Alon Binyamini briefed the monetary forum about the Research Departments forecasts. It predicts 2.5% inflation over the next 12 months, the interest rate will average 3.3% in a year's time, and the shekel will appreciate against other currencies.
Benyamini added, "Israel's risk premium could rise due to geopolitical events."
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2011
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