Bank of Israel

Israeli Central Bank Rate Cut 15 Basis Points to 0.15%

April 6, 2020

The Bank of Israel’s monetary policy rate has been lowered back to the low of 0.10% that prevailed from January 2015 until a 15-basis point increase in late November 2018. Previously, the rate had crested at 3.25% prior to 2011 but was lowered by 75 basis points per year over four consecutive calendar years through […] More

Decline Continues in Equity Markets

February 26, 2020

The dollar climbed overnight by 0.6% against sterling, 0.5% relative to the Australian dollar, 0.3% versus the yen and peso, 0.2% vis-a-vis the loonie, and 0.1% against the yuan. The dollar also extended its uptrend against several developing country currencies like the South African rand and South Korean won. Alternatively, the dollar dipped 0.2% against […] More

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

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