Israel May Hold Off on Rate Rise Until Mid-2016, Leumi Says

  • Won't follow Fed right away; rate gap may weaken shekel
  • Negative inflation due to one-off factors; rate cut not needed

The Bank of Israel won’t mirror U.S. Federal Reserve rate moves and probably will wait until mid-2016 to raise borrowing costs for the first time in five years, said the chief economist of Israel’s second-largest bank in assets.

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