It is still hard to predict whether the repeated lowering of interest rates by Bank of Israel Governor Stanley Fischer has contributed to increased employment and economic growth or to the reduction in the cost of credit for the business sector. However, it can safely be said that Fischer's actions have indeed worked in two areas: housing prices and the stock market. Tel Aviv stocks hasverecovered sharply since the beginning of the year, and bond prices have rebounded impressively. The TA-100 is up 27% so far this year, and real estate and shares are up even more.
What has happened on the TASE over the past few months is the result of a number of developments - and certainly not just due to lower interest rates. But the rates, which are nearing zero, also have had a major influence. The lack of serious alternatives to stocks, such as bank deposits, bonds or money-market funds, has forced investors back into the stock market - and has also affected
