Bank of Israel

Many Industrial Production Reports as Well as U.S. Jobs Day

January 10, 2020

Markets marked time ahead of the U.S. December labor market statistics. The dollar didn’t react much afterward, either. As of 08:10 EST, the dollar was up 0.2% against the Swiss franc and 0.1% relative to the euro and yen. The greenback was unchanged vis-a-vis the loonie and kiwi but down by 0.3% against the peso […] More

Israeli Central Bank Interest Rate Left Unchanged but Released Statement Is Decidedly More Dovish

August 28, 2019

The Monetary Committee’s assessment is that in view of the turnaround in the inflation environment in Israel and in the monetary policies of major central banks, the slowing in the global economy, and the continued appreciation of the shekel, the interest rate will not be increased for an extended period. Moreover, if necessary, the Committee […] More

Israeli Policy Interest Rate Unchanged at 0.25%

May 20, 2019

Six months have now elapsed since the one and only interest rate hike of the current tightening cycle. The rate previously had been pinned at 0.10% from February 2015 to November 2018, and it remains far beneath the last cyclical high in 2010 of 3.25% in the summer of 2011. In a published statement today following […] More

Bank of Israel Leaves Interest Rate Unchanged

January 7, 2019

The Bank of Israel Monetary Committee reviewed its monetary policy stance for the first time since a 15-basis point interest rate hike announced in late November to 0.25%. That increase had been the first change 3-3/4 years and reversed a cut of same size in February 2015, which had culminated a 310-basis point easing cycle […] More

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, […] More

Bank of Israel Leaves Central Bank Rate at 0.10% and Signals Reluctance to Start Normalization Anytime Soon

October 8, 2018

Forty four months have elapsed since the last Israeli central bank change, a cut of 15 basis points to 0.10% in February 2015. Inflation is still too low to begin raising the rate. The inflation environment has not changed markedly since the previous interest rate decision, despite slightly lower than expected recent CPI readings: The […] More

Bank of Israel Retains 0.10% Policy Interest Rate

April 16, 2018

The last central bank interest rate change in Israel was a cut of 15 basis points in February 2015 to 0.10%. Previously the rate had been lowered by 75 basis points per year in 2011-14. The latest policy review reaffirmed the need for continuing an accommodative stance. Although inflation early in 2018 was a shade […] More

Bank of Israel

February 27, 2018

Although Israel’s central bank interest rate has been only 0.10% since a 15-basis point reduction in February 2015 and a combined three percentage points of rate cuts over the prior four years, CPI inflation is currently below target and very low. According to a released statement, however, “in the past month inflation expectations increased, the […] More

Bank of Israel Maintains Status Quo

January 10, 2018

Having implemented three 25-basis point reductions per annum from 2011 to 2014 and one more 15-bp cut in February 2015, Israeli monetary officials have kept their central bank interest rate at 0.10% for almost three years. A released statement after their first policy review of 2018 observes that inflation is still under target, partly reflecting […] More

Bank of Israel

October 19, 2017

Israel’s key interest rate was left at 0.1% as expected. A released statement observed continuing sub-target inflation and a recently firmer shekel. Growth is in line with its potential non-inflationary pace and also more balanced than before. Home price inflation is a lessening concern to officials. The central bank interest rate has been at 0.1% […] More