Bank of Israel
July 10, 2017
After having cut Israel’s policy interest rate by 75 basis points per year in 2011-14, monetary officials sanctioned one final 10-basis point reduction in February 2015 to the present level of 0.10%. The latest policy review concluded as it has been doing for some time that an accommodative stance needs to be maintained for “as long as necessary in order to entrench the inflation environment within the target range.” Inflation is under 1.0% at 0.8% and expected to stay below target for the next couple of years. There is a strong labor market and solid economic growth, but a nearly 10% trade-weighted shekel appreciation in the past year is depressing the prices of imports and import-competing goods.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Israel
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