Bank of Israel

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

Bank of Israel

September 26, 2016

Israel’s central bank policy rate was left unchanged as expected at 0.1% at this month’s policy meeting. It’s been at 0.1% since a 15-basis point reduction in February 2015, and markets do not anticipate any rise over the coming year. Twelve earlier cuts of 25 basis  points – three each per hear in 2011, 2012, […] More

Bank of Israel

August 29, 2016

Israel’s last central bank interest rate change occurred in February 2015. A 15-basis point cut then to 0.10% culminated 325 basis points of easing that had begun during 2011. This month’s statement from the bank of Israel notes that market-implied measures do not anticipate a rate hike before 2018, and the opportunity is not taken […] More

Bank of Israel Keeps Key Interest Rate at 0.10%

July 25, 2016

Almost a year and a half have elapsed since the last Israeli interest rate change, which was a 15-basis point cut in February 2015.  The previous four calendar years had seen the rate reduced from 3.25% to 0.25%.  A statement released by Bank of Israel policymakers after this month’s review defended the appropriateness of the […] More

Bank of Israel’s Monetary Policy to “Remain Accommodative for a Considerable Time”

June 27, 2016

Israel’s central bank rate has been at 0.1% since a 15-basis point cut in February 2015, which was preceded by 75 bps worth of easing in each of 2011, 2012, 2013, and 2014.  Nonetheless, current inflation of 0.5% is not expected to rise into target until around the middle of next year.  Projected Israeli growth […] More

Bank of Israel

May 23, 2016

Like the fourteen previous monthly monetary policy meetings, this month’s decision was to keep the key Israeli central bank rate at a lowly 0.1%.  Four four straight calendar years (2011-14), it was reduced by 75 basis points, and those three cumulative percentage points of easing were topped off by a 15-basis point cut in February […] More

Bank of Israel

March 28, 2016

Israel’s policy interest rate, 0.10% since a 15-basis point cut in February 2015, was again left unchanged after the March monthly meeting of monetary policymakers.  In 2011, 2012, 2013 and 2014 the rate was cut three times each year.  All the reductions were by 25 basis points.  A statement explaining today’s decision noted that expected […] More