The governor's true adversary
By Avraham Tal Ha'aretz
The governor of the Bank of Israel will decide today to raise the interest rate, apparently by a high percentage. He must raise the interest; he has no choice. From all the streets and alleys of the capital market, the call is being sounded: Raise the interest, quickly and substantially. One percent is not sufficient. Neither is two, three is better.
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That being the case, the governor is actually fighting not against inflation per se, but against the dollar. He must repress the devaluation so that it will cease turning the wheel of prices. This has been the true goal of the Bank of Israel since it began raising the interest rates in March: to stop the race of the dollar.
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