Jerusalem - Israel's central bank has raised its interest rate, an indication that its economic chiefs believe the effects of the worldwide recession are easing.
The Bank of Israel announced a raise of a quarter of a percentage point, pushing the rate to 0.75 percent from its previous 0.5 percent.
The bank noted in a statement Monday that inflation last month was 1.1 percent, well above the target rate. The statement noted an upward trend but admitted, "there is great uncertainty regarding the expected rate of growth."
Industrialists Association head Shraga Brosh said the hike was a mistake. He told Army Radio, that the hike might harm the country's fragile growth.
(Source: AP)
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