Netanyahu said to push Bank of Israel chief to further cut interest rates, prompting angry response

Prime Minister Benjamin Netanyahu pressed Bank of Israel Governor Amir Yaron to lower interest rates during a meeting Thursday evening, according to the Kan public broadcaster.

“I don’t decide for you, but I recommend lowering the rate so it is at least like in the United States,” Netanyahu is quoted as saying telling Yaron, who reportedly was angered by the remarks and told the premier that “the government cannot interfere in the interest rate decisions of the Bank of Israel.”

The report says Netanyahu responded by stressing to Yaron that he “understands the separation [between the central bank and government], but it shouldn’t prevent me from telling you that this is my opinion.”

The reported exchange came after the Bank of Israel cut interest rates last week for the first time in nearly two years, while cautioning that any further cuts “will depend a lot on the developments, both on the geopolitical front and on the fiscal front.” Netanyahu has previously defended the bank’s independence following criticism from members of his ruling Likud party pushing for lower rates.