Bank of Israel

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

Bank of Israel Leaves Accommodative Policy Stance as Is

August 29, 2017

Two and a half years have now transpired since the Bank of Israel’s policy interest rate was last changed in February 2015 with the implementation of a cut of 15 basis points to 0.10%. That move culminated a 13-step easing of 75 basis points per year during the prior four calendar years. A statement released […] More

Bank of Israel

July 10, 2017

After having cut Israel’s policy interest rate by 75 basis points per year in 2011-14, monetary officials sanctioned one final 10-basis point reduction in February 2015 to the present level of 0.10%. The latest policy review concluded as it has been doing for some time that an accommodative stance needs to be maintained for “as […] More

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 […] More

Bank of Israel Retains 0.10% Interest Rate

April 6, 2017

In each of four consecutive years, 2011-2014, Israel’s central bank interest rate was sliced three times by 25 basis points, and that cumulative three percentage points of rate reduction was punctuated by one final 15-basis point cut in February 2015 to 0.10%. The rate has stayed at that level ever since including after the April policy […] More

Israel’s Central Bank Interest Rate Left at 0.10%

February 27, 2017

Two full years have now passed since the last Israeli interest rate change, a 15-basis point cut to 0.1% from 0.25% undertaken in late February 2015. A released statement observed positive on-year CPI inflation last month for the first time since August 2014. At 0.1%, such is minuscule, however, and short-term inflation expectations are still […] More

Bank of Israel Retains 0.1% Key Interest Rate

December 26, 2016

Israel’s policy interest rate has been 0.1% since a 15 basis point cut in February 2015. The rate previously had dropped from 3.25% to 0.25% during 2011-14. The Bank of Israel released a formal statement and remarks from Governor Flug justifying the need for the accommodative stance and explaining how Israel’s economy reflects the United States […] More

Time Out for the Holidays

December 26, 2016

The dollar is unchanged against the euro and Swiss franc, up 0.2% relative to the yen and 0.1% vis-a-vis the yuan and Mexican peso but down 0.5% against the kiwi, 0.3% versus the Aussie dollar and 0.2% against the loonie. Share prices rose 0.4% in China, reversing an initial sharper slide, but fell 0.2% in […] More

Bank of Israel

October 27, 2016

Israel’s central bank interest rate was left at 0.10% after the October policy meeting. It’s been at that level since a 15-basis point reduction in February 2015. In each of the four previous calendar years, three 25-bp reductions had been administered. On-year CPI inflation still lies below zero and significantly under what constitutes price stability. This […] More