Bank of Israel raises interest rate to 4.5 percent, the highest since 2007
The Bank of Israel on Monday warned that the government's planned judicial overhaul will lead to economic damage, shortly after it raised interest rates to 4.5 percent - the highest since before the 2008 global financial crisis.
Israeli economists have warned in recent months that the judicial reforms being advanced by Israel’s government could have grave consequences and potentially lead to a more “powerful” financial meltdown than they previously thought, pointing to other countries and research that indicates looming "long-term damage to economic growth and Israelis' standard of living."
Since the proposal of the legislation - which would curb the Supreme Court’s ruling on Basic Laws while also changing the composition of the committee that selects judges - Israel's currency had fallen by as much as 2.2 percent. But the shekel rallied back and closed 0.2 percent stronger against the U.S. dollar last week after Israeli Prime Minister Benjamin Netanyahu paused the overhaul of his country's judiciary.... Read More: i24