The bank will have to delay ending its policy of buying foreign currency to weaken the shekel because it cannot afford to harm the crucial export sector before an economic recovery has fully taken hold.
However, the central bank's fears that a strengthening shekel could damage the economy are opposed by concerns that inflation is not firmly under wraps.
How Israel solves this dilemma will be closely watched by central banks around the world as they ponder how to roll back the extraordinary measures taken to fight the worst recession in decades.
However, the central bank's fears that a strengthening shekel could damage the economy are opposed by concerns that inflation is not firmly under wraps.
How Israel solves this dilemma will be closely watched by central banks around the world as they ponder how to roll back the extraordinary measures taken to fight the worst recession in decades.
No comments:
Post a Comment