Interest rates soared in Israel as skepticism...

Interest rates soared in Israel as skepticism grew over the government’s decision to devalue the shekel. The Bank of Israel, the central bank, raised its lending rate to banks and other large financial institutions to 48.25% a year, compared to 32.8% a week ago. The rate is high because of Israel’s high inflation rate. Bank Leumi, the nation’s largest commercial bank, raised its basic lending rate to 2% a month from 1.5%. Other financial institutions were expected to follow suit. Israel Radio said people are “panicked” and many believe that further devaluation is imminent.