ARTICLE - Several weeks ago, the premier international rating agency Standard & Poor downgraded the credit ratings of Bank Hapoalim, Bank Leumi, and Bank Discount. This action was driven by concern over the quality of loans these banks have issued. In response, the Bank of Israel hurried to reaffirm that it remains committed to price stability. To back up its commitment, the Bank once again refrained this month from lowering interest rates.

Originally published in the Jerusalem Post, 11 October.

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