Sunday, August 2, 2009

ANALYSIS-Israel rates could rise before forex purchases end

JERUSALEM, July 31 (Reuters) - The Bank of Israel could raise interest rates before withdrawing all the radical measures it has taken to stimulate the economy, offering a test case for other central banks debating a return to more routine policiesOn Monday Israel became the first country to begin exiting the extraordinary measures deployed to fight the financial crisis, when it said it would stop buying government bonds, but surprised markets by maintaining its currency buying program.

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