Israel Cuts Interest Rates in Surprise Move

Israel's central bank - ranked one of the top in the world - surprised the financial markets with an unexpected interest rate cut to 1.75% earlier this week. Concerns have arisen among regulators that the country's economy may be slowing down, with the central bank now calling for economic growth of just 2.8% this year from 3.0% earlier.

"Indicators of real economic activity continue to point to weakness, and further moderation in the rate of growth is likely," said the bank in a note. "In addition, the shekel's recent strength may make it more difficult for the economy to deal with the challenges it faces."