Israeli Prime Minister Benjamin Netanyahu’s botched efforts to replace Stanley Fischer have fueled concerns the Bank of Israel won’t keep the shekel in check, hurting the country’s export-driven economy.
Prime Minister Benjamin Netanyahu’s shortlist to succeed Stanley Fischer as Bank of Israel head includes Deputy Governor Karnit Flug and Manuel Trajtenberg, one of the premier’s former economic advisers, said two people familiar with the appointment process.
Clal Industries and Investments Ltd. and its cement unit Nesher would be “significantly” affected should the recommendations of a committee on the cost of living be implemented, Clal said today in a statement to the Tel Aviv Stock Exchange. The panel was headed by Israeli economist Manuel Trajtenberg.
Israel’s benchmark government bond yield rose to a two-month high as foreign investors trimmed holdings on concern over the central bank’s transition once Stanley Fischer steps down as governor at the end of June.
Israeli inflation expectations declined to the lowest level in more than three weeks after the cabinet approved proposals from the government-appointed Trajtenberg committee to address cost-of-living complaints.
Israel should raise taxes on companies and on individuals who earn more than about $130,000 a year, according to a panel appointed by Prime Minister Benjamin Netanyahu in response to protests over the cost of living.