No Change in Key Israeli Interest Rate

December 28, 2010

The Bank of Israel’s key interest rate was left at 2.0%, matching expectations.  There so far have been six increases of 25 basis points each but none since September.  In a released statement, monetary policy was called “expansionary” and in a gradual return to more normal levels, but several reasons were given for not raising the […] More

Bank of Israel Interest Rate Benchmark Left at 2.0%

November 22, 2010

Israel’s central bank has implemented six 25-basis point rate hikes since August 2009, the latest being done in September of this year.  Today, as in October, the key rate was left at 2.0%, but this time the rate corridor in the credit window was doubled from plus or minus 0.25% to plus or minus 0.50%.  […] More

Bank of Israel Benchmark Interest Rate Left at 2.0%

October 25, 2010

As analysts anticipated, there was not a seventh rate increase.  The six increases, each by 25 basis points, were announced in August 2009, November, December, March 2010, July and September.  A statement from the Bank of Israel reiterates that a process remains in place of gradual rate normalization that should lift the key rate to […] More

Bank of Israel Tightens

September 27, 2010

Interest rate decisions by the Bank of Israel are made at pre-scheduled times but by a single person, Governor Stanley Fisher.  Efforts are underway to cede authority to a committee, but that hasn’t happened yet.  During the world and Israeli recessions, the central bank policy interest rate was cut eight times starting in October 2008 […] More

Israeli Monetary Policy

August 24, 2010

The Bank of Israel yesterday announced no change in the 1.75% Policy Rate, which had previously been raised by 25 basis points each in August, November and December of 2009 and March and July of this year.  A statement from the Bank called policy still “expansionary” and spoke of an uneven normalization process that now […] More

Bank of Israel Lifts Key Interest Rate for Second Time in 2010 and Fifth Time Since August 2009

July 26, 2010

Somewhat unexpectedly, Israel’s policy rate was raised by 25 basis points to 1.75%.  The prior four increases, all by 25 bps, were implemented in August, November, and December of 2009, as well as March of this year.  Like those moves, Today’s statement characterized the most recent increase as part of a normalizing process, but the […] More

Israeli Policy Interest Rate Left at 1.5%

June 28, 2010

For a third straight month, the Bank of Israel decided not to implement a fifth rise of the short-term borrowing rate.  Such remains at 1.5%, after 25-basis points implemented last August, November, December and March.  A statement from the Bank of Israel repeats the view made in the April and May statements that present policy […] More

Bank of Israel Policy Interest Rate Kept at 1.5%

May 24, 2010

Israel began the process of gradually returning to normal short-term interest rates nine months ago.  The central bank was the first to raise rates after the world recession.  While raising rates by 25 basis points in August, November, December and March 2010, the central bank paused in September, October, January, February, April and now May.  […] More

Bank of Israel: No Policy Change This Month

April 26, 2010

Contrary to the view of some analysts, the Bank of Israel’s short-term borrowing rate was not raised today by a further 25 basis points but rather left steady at 1.50%.  Only Australia’s five rate increases surpass Israel’s four.  Those increases, like Australia’s, were all by 25 basis points and were implemented last August, November, December […] More

Bank of Israel Rate Lifted 25 Basis Points

March 29, 2010

The Bank of Israel raised its key borrowing rate to 1.5% from 1.25% as expected.  In doing so, Israel joined  Australia as the only economies with four rate hikes so far, and all four moves by each central bank have been by increments of 25 basis points.  Today’s move, however, was the first one in […] More