Israeli Central Bank Interest Rate Kept at 0.1%
May 29, 2017
Bank of Israel policymakers last changed their interest rate in February 2015 when a 15-basis point reduction capped an easing cycle that included 75 basis points of cut in each of the previous four years. Officials released a statement today the observed somewhat higher actual inflation and short-term expected inflation as well as solid growth and a labor market that’s getting closer to full employment. However, long-term inflation expectations remain well-anchored at the central bank target. The trade-weighted shekel is stable, and inflation, though up, remains lower than the central bank target. An accommodative monetary policy needs to be maintained “as long as necessary in order to entrench the inflation environment within the target range.”
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Israel
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