The bank predicts that the CPI will rise by 0.5% in August, but fall by 0.1% in September.
Union Bank predicts in its weekly market report that the shekel-dollar exchange rate will range between NIS 4.22-4.29/$ this week, the closest support and resistance levels, respectively. The next support level is NIS 4.183/$ and next resistance level is NIS 4.34/$.
The bank predicts that the Consumer Price Index (CPI) will rise by 0.5% in August, but will fall by 0.1% in September, and again rise by 0.3% in October.
Union Bank notes that the interest rate of 3.75% is 150 basis points less than the US interest rate and 25 points less than the euro rate. Recent market developments in the wake of the US sub-prime mortgage crisis have led to assessments that the US Federal Reserve Board will cut the interest rate sooner than previously expected. The 1.1% rise in Israel’s CPI in July have also led to predictions that the Bank of Israel will raise its interest rate sooner than previously expected, with a hike possibly coming at the next interest rate decision.
Published by Globes [online], Israel business news - www.globes.co.il - on August 19, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007