From the Liveblog of
Monday, February 20, 2023
Bank of Israel governor says independent institutions ‘crucial’ to thriving economy
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Bank of Israel Governor Amir Yaron defends the decision to raise the interest rate for an eighth straight meeting.
“The interest rate takes a while to influence the economy,” Yaron tells Channel 12 news, when asked if his policies weren’t working, in light of continued inflation.
“It’s very important to understand, our main role is price stability. Without stable prices, there is no thriving, prosperous and stable economy here,” he says, while acknowledging “the pain” Israelis with rising mortgage payments feel.
In a separate interview with the Kan public broadcaster, Yaron says an independent Bank of Israel is “crucial” to Israel’s economy, after Foreign Minister Eli Cohen slammed the latest interest rate rise.
He is also asked about the government’s push to radically transform Israel’s judicial system, given warnings that the efforts could hurt Israel’s economy and credit rating.
“We know, and there is a lot of research in the economic world that shows that the independence and strength of institutions are crucial components in economic development and prosperity,” he says.
Noting that international finance institutions are looking into the potential economic impact of the proposed changes to the judiciary, he adds, “It’s really important to safeguard these characteristics, the independence and strength of these institutions, in any move that is advanced.”
The Times of Israel Community.