www.bethelfinance.com
Leader Capital Markets predicts that the Bank of Israel will raise the interest rate to 3% by the end of 2012, from the current rate of 2.5%. It cites rising inflation, the shekel's depreciation against other currencies, and higher oil prices as reasons for an interest rate hike.
Leader also predicts that rising oil prices will boost the inflation rate to at least 2.5% in 2012. The estimate is based on a 10% rise in the price of a barrel of oil, which will add 0.3 percentage points to inflation in Israel.
Leader believes that the global economic situation will improve. "The US continues to have the highest growth rates in developed countries, and might achieve 3% growth this year. Europe continues to stagnate, but emerging markets are contributing to global growth," it says.
Leader says that surplus liquidity and low interest rates support higher prices of shares on stock markets, as well as for commodities, but less for government bonds.
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