Thursday, April 21, 2011

Bethel Finances: Bank of Israel reports lower inflation expectations

wwwbethelfinance.com

Bethel Finance news:

The Bank of Israel has cut current 12-month inflation expectations calculated from the capital market (through March 2012) to 3.3% from 3.7% in March. Current inflation expectations for the subsequent 12-month period (through March 2013) have fallen to 3% from 3.2% in March.

Current inflation expectations for the 12 months through March 2014 are down to 2.6% from 2.7% in March.

The average 12-month inflation expectations of banks and investment houses is unchanged at 3.1%, the same as in March and February.

Although the 12-month inflation expectations are still above the government's 1-3% inflation target, they are falling closer to the upper limit as the Consumer Price Index (CPI) rose 0.2% in March, in line with capital market forecasts.

Analysts believe that it will raise the interest rate by 25 basis points to 3.25%

No comments:

Post a Comment