Bank of Israel cuts benchmark lending rate to 1%

This is Governor’s Fischer sixth reduction since October 2008. Fischer has cut the benchmark rate from 4.25% in October
 
The Bank of Israel announced last week the reduction of its benchmark lending rate by three quarters of a percentage point to a record low.
 
Governor of the Bank of Israel Stanly Fischer cut the rate to 1%, the sixth reduction since October 2008.
 
Fischer has cut the benchmark rate from 4.25% in October as the economy slides into recession and the decline of global energy and commodities prices brings down inflation.
 
Fischer’s efforts to use monetary policy to stimulate the economy have been frustrated by the failure of commercial banks to pass on the full extent of his rate cuts or increase their lending rate.