Bank of Israel: Dovish Language but 2.25% Benchmark Interest Rate Not Cut This Month

July 23, 2012


There have been four central bank rate reductions since last November, most recently on June 25.  On-year inflation of 1.0% is at the target floor.  Expected inflation lies near center-range.  Officials did not ease further in July but seem ready to do so if growth prospects worsen.

The Bank of Israel will continue to monitor developments in the Israeli and global economies and in financial markets, particularly in light of the increasing uncertainty in the global economy. The Bank will use the tools available to it to achieve its objectives of price stability, the encouragement of employment and growth, and support for the stability of the financial system, and in this regard will keep a close watch on developments in the asset markets, including the housing market.

The next meeting is set for August 27th.

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



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