The Bank of Israel notes that 12-month inflation expectations fell to 2.6% in the third quarter from 3.1% in the second quarter
Bank of Israel predicted last week that Israel's growth rate will slow in the fourth quarter of 2011, for the first time since the second quarter of 2009.
The prediction was made in the Bank's Survey of Companies for the Third Quarter.
The slowdown in growth will follow the slower growth in May-August 2011 as economic uncertainty increased.
The slower growth in the fourth quarter will be due to domestic consumption, manufacturing exports and sales of services abroad, the same factors that affected Israel's growth in the third quarter.
The Bank of Israel notes that 12-month inflation expectations fell to 2.6% in the third quarter from 3.1% in the second quarter. Companies expect that the shekel-dollar exchange rate in twelve months' time will be NIS 3.80/$, compared with NIS 3.60/$ forecast in the previous survey, and NIS 3.70/$ during the period that the survey was conducted.
