Fischer lowers benchmark interest rate

Stanley Fischer, Bank of Israel Governor cut the benchmark interest rate for the first time in two and a half years lowering the rate by a quarter point to 3 percent. The moves places Israel with Brazil and Turkey who carried out similar steps in an effort to reduce lending costs in the midst of the global slowdown. Fischer said last week that Israel's two-year monetary tightening cycle is probably over and that there was room to cut the rate. The Bank of Israel last week reduced its growth forecast for next year to 3.2 percent from 3.9 percent, saying export growth may slow.