Monday, May 28, 2007

Israeli Shahar Bond Advances on Expectations Bank Will Cut Key Rate Today

(Bloomberg) -- Israel's benchmark Shahar bond gained
for a second day on speculation the Bank of Israel will cut
interest rates today in order to lift inflation to the government
target range of between 1 percent to 3 percent.

The central bank has lowered its key lending rate 1.75
percent since the end of October to 3.75 percent as it seeks to
weaken the shekel. The shekel has appreciated 4 percent so far in
the second quarter from the first three months of the year,
spurring higher prices for housing and other dollar-linked items.


Read more at Bloomberg Bonds News

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