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Questions and answers about the Bank of Israel's policy
Questions and answers in pdf file.
What are the Bank of Israel's policy objectives?
Why does the Bank of Israel increase the interest rate when the Fed and other leading central banks are keeping their interest rates at very low levels, and are expected to continue to do so for a long time?
What factors affect the rate of increase of the interest rate?
Why does the Bank increase the interest rate and also buy foreign currency? Don't these activities act in opposite directions?
Can the Bank affect the exchange rate?
Does the Bank of Israel perform a cost benefit analysis on its foreign currency purchases?
Is the Bank of Israel exceptional in its activities on the foreign currency market compared with other countries?
Does the low rate of interest encourage the creation of a real estate bubble?