The Bank of Israel said on Jan. 29, 2001, it would lower its discount rate for February by 30 basis points to 7.7% from 8%, saying inflation would be between 1% and 2.5% in 2001. The move is at the top end of forecasts for a cut of between 20 and 30 basis points and is the latest in series of rate cuts since the monetary tender rate peaked at 13.5% in December 1998. In the last seven months alone the bank has shaved the rate by 160 basis points.

The rate cut comes at a time of record-low