Central Bank of Israel

January 23, 2017

Israel’s monetary committee retained a minimal key interest rate, which has been at 0.1% since a 15-basis point reduction in nearly two years ago in late February 2015. The central bank’s statement explaining today’s decision not to change the rate notes that CPI inflation averaged minus 0.2% in 2016 and observes that “risks to achieving the inflation target of 1-3% remain high, yet the increases in wages and in global inflation are expected to support the return of inflation to the target.” The policy stance is also intended to support growth and financial market stability. Officials are positive about growth prospects, and the statement notes a 6.2% trade-weighted on-year appreciation of the shekel over the past year.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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