Mon Aug 6, 2012 1:57pm IST–Aug 6 (Reuters) – Uncertainty over the European economy, Israeli growth and the government’s fiscal policies led the Bank of Israel to leave short-term interest rates unchanged last month, minutes of the discussions showed on Monday.

The central bank held its benchmark interest rate at 2.25 percent on July 23 – a decision that was supported by all six monetary policy committee members. A month earlier, the MPC had voted to lower the key rate by a quarter-point on worries the global slowdown would harm Israel’s economy.

Policymakers said a sharp drop in exports – some 40 percent of Israel’s economic activity – in June was extraordinary and it was not clear whether the decline marked a change in the trend or was a one-time figure…Read More>>

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