Bank of Israel Leaves Accommodative Policy Stance as Is
August 29, 2017
Two and a half years have now transpired since the Bank of Israel’s policy interest rate was last changed in February 2015 with the implementation of a cut of 15 basis points to 0.10%. That move culminated a 13-step easing of 75 basis points per year during the prior four calendar years. A statement released after today’s policy review promises to maintain a accommodative stance for as long as is necessary to lift inflation into its target range. Inflation is still “markedly lower than target” and notes that growth in the first half of 2017 was somewhat more moderate than in late 2016. But global economic activity has improved, the shekel is no longer appreciating, and expected inflation has been pretty steady and closer to target than actual inflation.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Israel
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