Bank of #Israel Adds $10 Billion to Crisis Bond-Buying Plan - Bloomberg

Bank of Israel Adds $10 Billion to Crisis Bond-Buying Plan - Bloomberg

The Bank of Israel will buy 35 billion shekels ($10.3 billion) more in government bonds and provide cheap credit for small businesses to boost the economy that is now emerging from a second national lockdown.

The monetary committee decided to expand the scope of government bond purchases beyond 50 billion shekels “to ensure that the economy’s credit needs continue to receive a response via a convenient interest rate environment,” Governor Amir Yaron said on Thursday.

The Bank of Israel is trying to shore up the battered economy, with tumbling consumer confidence and unemployment rising to almost 20% since Israel hunkered down last month. The government started loosening restrictions this week as new coronavirus cases drop, but the pace of the phased reopening remains uncertain. The central bank now estimates the economy will contract between 5% and 6.5% this year.