2024-01-02 07:07:00
Bank of Israel Lowers Interest Rate to 4.5%
The governor of the Bank of Israel has decided to lower the interest rate in the economy by 0.25% to 4.5%. This decision came as a surprise, as most estimates were that the interest rate would remain unchanged. The announcement caused the stock market to jump, but with only 1 hour and 25 minutes to respond to the news, it is expected that the market will continue to see increases today.
In response to the announcement, Wall Street futures are down 0.1%, while the Hang Seng index in Asia is down 1.4%, the Nikkei is down 0.2%, and the Shanghai Index is also down 0.2%.
The Tel Aviv Stock Exchange managed to rise by 4-5% despite various challenges, such as the war and legal reform. However, it still lags behind the indices in the US. Analysts attribute this difference in performance to the weighting of technology stocks, with Tel Aviv having a lower weighting of technology stocks compared to Wall Street.
In light of the interest rate cut, the Tel Aviv Stock Exchange opened the new year with gains of 4.8%. The decision to lower the interest rate comes at a time when speculation is rife about where to invest money in 2024.
In related news, Bank Leumi’s transaction room has published a buy recommendation for Delek Group shares for the first day of 2024, projecting a 20% upside for the stock. This recommendation is based on a significant private issuance of bonds by the group.
Overall, the decision to lower the interest rate is expected to have a significant impact on the stock market and the economy as a whole. With continued speculation about where to invest in 2024, it remains to be seen how the market will respond to this new development.
#day #interest #rate #cut #expect #increases