Bank of Israel Governor Prof. Amir Yaron. When he talks about raising interest rates as a necessary tool, is he hinting at things to come? (Photo: Flash 90, Flash 90)
Bank of Israel Governor Prof. Amir Yaron participated this morning in the Eli Hurvitz Conference on Economics and Society of the Israel Democracy Institute and said, among other things, the following:
"Raising the interest rate is a painful and necessary tool to eradicate inflation. We examine the pain and examine how to eradicate it. Had the Bank of Israel not responded, the increase in the monthly repayment would not have been noticeable at first, but it is rising exponentially. The damage was much greater."
The Governor added a reference to the banks, saying: "I expect the banks to pass on the interest rate increase to the consumer public*, the creative solutions presented by the banks show how much they can help consumers who need it. They are expected to continue."
Minister of Finance, Bezalel Smotrich. On the one hand he was praised, on the other he was criticized (Photo: Government Press Office)
What does he think about the budget?
The state budget for 2023-2024, which was recently passed, was also addressed by the Governor. On the one hand, he complimented Finance Minister Bezalel Smotrich: "The budget framework is responsible, and corresponds with the monetary targets. Despite the many pressures raised," the Governor did not hide his displeasure with the distribution of funds to the public, which refrained from core studies and participation in the labor force: "Looking at the budget, it lacks
significant components. Two essential components that are missing: physical capital and human capital. A significant gap in light of demographic growth in Israel."
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Tags
- Amir Yaron
- Governor of the Bank of Israel
- inflation
- interest
- Israel Democracy Institute
