Knesset okays 1st reading of bank law

Knesset okays 1st reading of bank law

Legislation will make it more likely Stanley Fischer will serve second term in office.

Published: February 12 2010, 09:46

The Knesset on Monday gave initial approval to a law that will set up a monetary-policy committee for the first time, making it more likely for Bank of Israel Governor Stanley Fischer to serve a second term in office.

The law was backed by a vote of 22 to 2 in a first reading and will now be sent to the Finance Committee for discussion before returning to the assembly for second and third readings.

Fischer, whose term finishes at the end of April, said on January 27 that approval of the legislation would be an “important” consideration in his decision whether to remain in office. The current law governing the bank dates from 1954.

The law, which successive governments have been discussing for more than a decade, specifies price stability as the central bank’s primary goal, creates a six-member committee to set interest rates and requires it to explain its rate decisions in writing and publish minutes of its meetings. Under the current law, the governor has the sole authority to change rates.

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Knesset okays 1st reading of bank law הדפס Knesset okays 1st reading of bank law Legislation will make it more likely Stanley Fischer will serve second term in office. Published: February 12 2010, 09:46 The Knesset on Monday gave initial approval to a law that will set up a monetary-policy committee for the first time, making it more likely for Bank of Israel Governor Stanley Fischer to serve a second term in office. The law was backed by a vote of 22 to 2 in a first reading and will now be sent to the Finance Committee for discussion before returning to the assembly for second and third readings. Fischer, whose term finishes at the end of April, said on January 27 that approval of the legislation would be an “important” consideration in his decision whether to remain in office. The current law governing the bank dates from 1954. The law, which successive governments have been discussing for more than a decade, specifies price stability as the central bank’s primary goal, creates a six-member committee to set interest rates and requires it to explain its rate decisions in writing and publish minutes of its meetings. Under the current law, the governor has the sole authority to change rates.