Bank of Israel

September 28, 2015

Israel’s policy interest rate will remain at 0.10% next month, it’s level since a 15-basis point cut announced in late February.  The rate was cut from 3.25% at end-2010 to 0.25%  at end-2014.  Each of the intervening years saw the rate cut by 25 bps on three occasions. A statement of explanation released this past Friday notes that inflation is still below zero and that short-term inflation expectations have slipped.  Global growth among developing economies has slowed, but activity in Israel has been ample.  The shekel had fallen since the August meeting but is higher year-to-date.  Global equities have declined in volatile trading. Officials are watching global markets and Israeli housing closely.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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