Bank of Israel Raises Key Interest Rate
November 26, 2018
The Bank of Israel‘s key interest rate was changed for the first time since a 15-basis point cut in February 2015. That reduction was reversed today, but officials characterize the new stance as still accommodative. The rate is only 0.25% and was 3.25% at the end of 2010. In justifying today’s 15-basis point rate hike, central bank officials observed that inflation has stabilized slightly above the target floor. Inflation expectations have also returned to target, and GDP is converging on its potential non-inflationary path.
Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Israel
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