Attorney Roey Cohen, chairman of Lahav — the umbrella organization of independent businesses in Israel — criticized the Bank of Israel's quarter-point interest rate cut, saying the economy required a half-point reduction given three years of war and the ongoing economic crisis, according to N12.
Attorney Roey Cohen, chairman of Lahav (the umbrella organization for independent businesses and enterprises in Israel), criticized the Bank of Israel's interest rate decision on Monday, saying the quarter-point reduction fell short of the economy's needs. In a statement reported by N12, Cohen said that given three years of war and the economic crisis facing the Israeli economy, the governor should have cut the rate by half a percentage point instead. The decision to settle for only a quarter-point reduction misses a significant opportunity to accelerate economic recovery, he added.
The criticism follows a series of reactions to the Bank of Israel's monetary policy decision earlier Monday. As The Zioneer reported, Finance Minister Bezalel Smotrich similarly called the cut "minimal" and disconnected from the economy's needs, while Dubi Amitai, chairman of the Business Sector Presidency, welcomed the cut as enabling businesses to invest and return to growth. Cohen's statement represents the independent business sector's sharpest pushback so far against the scope of the reduction.
2 developments
- DevelopingHi-Tech Union chair says Bank of Israel rate cut 'a step in the right direction, but insufficient'
- DevelopingSmotrich criticizes Bank of Israel governor over 'minimal' rate cut
- DevelopingBuilders head calls on Bank of Israel to cut rate to 2.5%, slash rental taxes
- DevelopingAnalysts assess Bank of Israel will cut interest rate by quarter point tomorrow
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