PrintIsrael rates could fall faster if inflation keeps declining, cenbank chief says
BY Reuters | ECONOMIC | 07:36 AM EDTJERUSALEM, June 2 (Reuters) - Israel's short-term interest rates could fall at a faster pace if inflation continues to ease, Bank of Israel Governor Amir Yaron said on Tuesday.
Yaron, speaking at an Israel Democracy Institute conference, noted that since the last interest rates decision on May 25, expectations of a ceasefire deal with Iran have increased, leading to lower energy prices and a stronger shekel versus the dollar.
As a result, inflation expectations have declined in Israel.
"As inflation expectations decline - and certainly if they approach the lower bound of the (1%-3%) target range - this justifies a more accommodative monetary policy and a faster pace of easing," Yaron said. (Reporting by Steven Scheer; Editing by Andrew Heavens)
