Dr. Gil Bufman, Chief Economist of Bank Leumi said today that "according to an analysis of the yield curve, Bank of Israel is being led by the markets and not leading them ¿ how can the central bank confer a sense of security in the shekel with interest on short term debt at 7% for quite some time? The governor is behind the market and not raising interest rates enough. Yield on the bond market has risen 3% since the beginning of the year while monetary interest has risen just 1.8%."
"The market expects Bank of Israel and the government to show economic leadership in order to return confidence in the shekel. Even ratification of the emergency economic plan is not likely, in the current situation, to stabilize the local currency," Bufman said.