The Bank of Israel yesterday became the first leading central bank to raise interest rates since the global economic crisis intensified last September, increasing its policy rate from 0.5 per cent to 0.75 per cent.
Stanley Fischer, governor of the Jerusalem-based bank, lifted the rate in a move unexpected by many economists. The increase was the first since July 2008 for the central bank, which had cut its key rate by 3.75 points from last October to March.
