Bank of Israel governor David Klein stated that there is already agreement in principle to the moves he presented in negotiations of the economic package deal as pre-conditions to accelerated interest rate cuts.

The stipulations were liberalization of the government bond and short-term debt markets, as well as completion of the liberalization of the foreign currency market.

According to Klein, these conditions will ensure continued economic stability at lower interest rates, as the central bank will be able to act directly in the market, not through the commercial banks.

The governor said the pace at which the central bank will lower interest rates is dependent on the quality of the arrangements made in the package deal.