Bank of Israel
May 23, 2016
Like the fourteen previous monthly monetary policy meetings, this month’s decision was to keep the key Israeli central bank rate at a lowly 0.1%. Four four straight calendar years (2011-14), it was reduced by 75 basis points, and those three cumulative percentage points of easing were topped off by a 15-basis point cut in February 2015. A statemen t released after the May decision observed a high risk that inflation, now at -0.9%, will not return to the 2% target as quickly as hoped. Because of contracting exports, risk surrounding Israel’s growth outlook is also more skewed to the downside.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Israel