Earlier this week, I commented on how the Bank of Israel had ignored local pressure groups and fought its corner on behalf of the whole economy. Interest rates were raised by 0.25% to 1%.

3 days later, and the governor, Stanley Fisher, is bathing in praise.

Avi Temkin in the Globes financial newspaper described Fisher as a “light unto central banks”. 

Fischer is simply ahead of other economies, and is blazing a new trail that others will follow in a while. The Bank of Israel Governor has not hidden in recent months his opinion that countries must abandon their expansionary policies if economic conditions obligate and enable them to do so. His latest step is a type of call to all to move in this direction, and a sign to the world that talking about a continuation of expansionary policies for a long period is not accepted by everybody.

Michael Eisenberg, a popular blogger and venture capitalist, notes that Fisher’s term in office will soon be over. He recommneds that Prime Minister Netanyahu must keep him on.

In some ways, the softest and sweetest praise has emerged from the Wall Street Journal. Its headline noted that the interest increase came on the back of an economic turnaround. As I have said several times in recent months, many other financial can only be jealous of such a relatively strong economy.

The signs for 2010 and Israel’s economy continue to look good. Well done, Stanley.