The Bank of Israel keeps its interest rate unchanged at 1.00%
The Bank of Israel (BoI) decided to keep its interest rate for December unchanged at 1.00%, representing the third consecutive month in which the central bank rate has not changed. According to the BoI announcement, the decision was made against the backdrop of the following factors: inflation is near the center of the price stability target range, yet inflation expectations have fallen and are today along the lower border of the target range; GDP increased by a moderate rate in the third quarter, but at the beginning of the fourth quarter a certain recovery occurred in real activity; a slight depreciation in the exchange rate occurred vis-à-vis the US dollar since the previous interest rate decision, and simultaneously an increase (strengthening) occurred in the effective nominal exchange rate (the exchange rate of the shekel vis-à-vis the weighted currencies of Israel’s 28 main trading partners); monetary policy around the world has remained very expansionary and is expected to remain this way over time, while at the same time uncertainty exists regarding the timing of the anticipated “tapering” by the US Federal Reserve; the OECD revised its global growth forecasts downwards against the backdrop of an additional moderation in the growth rates of emerging markets; and local housing prices continue to climb.
The full article is presented in pdf format and can be viewed with Adobe Acrobat Reader software. Install the software
File not opening? Please disable pop-up blocking for this site.