Israel’s central bank surprised even its own business community with a 25 base point rate hike to 0.75%. Zero Hedge points out that Israel has frequently, though not always, led the interest rate cycle globally.
Zero Hedge: Given the Bank of Israel’s history as a “fastboat” central bank (as compared to the cruiseliner Fed or iceberg ECB), reacting with “first-mover” advantage on the macro cycle, this is a potentially interesting leading indicator for growth.
Israel’s central bank made the move due to signs of inflation surprising forecasters. Could this be a sign of things to come in the US?
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