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Housing prices, benchmark interest rate go up in Israel

Jul 29, 2010 | 0 Comment(s)


Israel's central bank governor Stanley Fischer raised the benchmark interest rate by .25% to 1.75% amid rising property prices rising and expectations of inflation.

Israel began its recovery from the global crisis ahead of most countries.  The unemployment rate has dropped to the lowest it has been in more than a year, and the shekel has strengthened against the dollar. As the country's economy improved, so have housing prices risen -- by 20% in the past year, raising fears of a property bubble.

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