Untimely Interest Rate Rise Could Delay Recovery

BMI View : Although in line with our view which sees rates rising by a further 25 basis points (bps) to 2.0% by end 2010, the Bank of Israel's decision to raise the lending rate by 25bps to 1.75% makes us increasingly cautious over the sustainability of the economic recovery. This is in light of a slowdown in growth in Q110 relative to H209.

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