The TA-25 index registered its largest increase in three months amid larger-than-expected overseas income.
The profits are largely attributable to the Bank of Israel’s intervention, which keeps the dollar artificially high, and consequently makes overseas income balloon.
The BOI creates a major bubble with interventions in the foreign exchange market and by keeping the interest rate at near-zero. While BOI’s policy cannot increase industrial investment, it props speculation and the real-estate boom, only to make the eventual restructuring more severe.
