Bank of Israel Leaves Interest Rate Unchanged
January 7, 2019
The Bank of Israel Monetary Committee reviewed its monetary policy stance for the first time since a 15-basis point interest rate hike announced in late November to 0.25%. That increase had been the first change 3-3/4 years and reversed a cut of same size in February 2015, which had culminated a 310-basis point easing cycle begun in 2011. A released statement after today’s review strikes a sanguine tone, concluding that “the rising path of the interest rate in the future will be gradual and cautious, in a manner that supports a process at the end of which inflation will stabilize around the midpoint of the target range, and that supports economic activity.” The policy stance remains accommodative, and inflation running at 1.2-1.4% lately is only a tad above the target floor.
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Israel
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