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Central Banker Who Shocked Israel Defends Her Surprise Rate Hike

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  • Deputy governor who presided over November hike ends her term
  • Says new governor Yaron brings ‘deep understanding’ to role
Nadine Baudot-Trajtenberg, second from left.
Nadine Baudot-Trajtenberg, second from left. Photographer: Ariel Jerozolimski/Bloomberg

The outcome of the lone meeting Nadine Baudot-Trajtenberg chaired at the Bank of Israel will resonate long after her five-year term as deputy governor ends this week.

Last November, Baudot-Trajtenberg as acting governor led the decision to raise interest rates for the first time since 2011. Although economists have questioned the move, Baudot-Trajtenberg said the decision was “completely coherent” with domestic economic data that has come out since, even as overseas the picture has darkened.