The governor of the Bank of Israel, Stanley Fischer, this week told a finance committee at the Knesset that the central bank cannot be the principal instrument in controlling the housing market in the country.

Fischer said lending to residential mortgages is, in fact, "the cheapest type of credit provided by the banks", and that "credit to builders has also increased". However, he said, "one of the main factors affecting the supply of housing in Israel is the lengthy planning process".

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