Bank of Israel: No Change

March 26, 2012

Today’s rate decision, like that in February, was to leave the Bank of Israel’s benchmark interest rate at 2.5%.  This was the outcome that most analysts were predicting.  The rate was at 0.5% prior to August 2009 but raised by 75 bps over the rest of that year, an additional 75 bps in 2010 and four times in 2011 by a total of 125 bps to 3.25%.  More recently, cuts of 25 bps each were implemented in September, November and January 2012. 

A statement today expresses contentment with inflation and growth and observes lessening global economic strains.  Actual CPI inflation of 1.7% and expected inflation lie within targeted parameters, and GDP is projected to expand by 3.1% this year and 3.5% in 2013. 

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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