Bank of Israel

50-Basis Point Israeli Central Bank Rate Hike Brings Cumulative Increase Since April to 315 Basis points

November 21, 2022

The Bank of Israel’s new policy rate now becomes 3.25%, an 11-year high after the sixth increase this year. The rate had previously been just 0.10% since a 15-basis reduction in April 2020 and maintained there for two years. Like many monetary authorities around the world, Bank of Israel officials are fighting above-target and increasingly […] More

75-Basis Point Bank of Israel Interest Rate Hike

October 4, 2022

The Bank of Israel yesterday unveiled a 75-basis point hike of its policy interest rate to 2.75%. That followed a similar-sized hike in August and brought the amount of cumulative increase to 265 basis points since April. The new 2.75% rate level is its highest in almost 11 years. Israeli CPI inflation fell 0.6 percentage […] More

Big Market Turnaround: Equity Rebound and Lower Dollar and Sovereign Debt Yields

October 4, 2022

Market expectations of how much further the federal funds target rate will be raised in the coming six months have been scaled back significantly. The catalyst has been evidence of softer U.S. demand, notably visible in yesterday’s ISM-compiled purchasing managers survey of manufacturers, which dropped 1.8 index points to a 28-month low of 50.9. Sub-indices […] More

More Central Bank Rate Hikes in Pakistan, Israel, and Ghana

May 23, 2022

In all of these instances, tightening interest rate cycles inspired by accelerating inflation had begun prior to today’s moves. There have been five increases of the State Bank of Pakistan‘s policy interest rate since September 2021, when the rate was raised 25 basis points from 7.0% to 7.25%. hikes followed of 150 basis points in […] More

Gradual Central Bank Interest Rate Incline Begins in Israel

April 11, 2022

Officials at the Bank of Israel raised their interest rate by a quarter percentage point to 0.35%. The rate had been 0.1% since a 15 basis point cut in April 2020 and matching a record low from late 2014 until November 2018. Analysts had expected an increase today but only by enough to reverse the […] More

Central Banks of Turkey, Ukraine, and Israel Review Monetary Policies

October 22, 2020

Instead of a follow-through measure after last month’s two percentage point rate hike, officials at the Central Bank of Turkey surprised analysts by keeping their one-week repo rate unchanged at 10.25%. Many had been expected the rate to return to its end-2019 level of 12%. The rate initially this year had been slashed by 75 […] More

Israeli Central Bank Rate Cut 15 Basis Points to 0.15%

April 6, 2020

The Bank of Israel’s monetary policy rate has been lowered back to the low of 0.10% that prevailed from January 2015 until a 15-basis point increase in late November 2018. Previously, the rate had crested at 3.25% prior to 2011 but was lowered by 75 basis points per year over four consecutive calendar years through […] More

Decline Continues in Equity Markets

February 26, 2020

The dollar climbed overnight by 0.6% against sterling, 0.5% relative to the Australian dollar, 0.3% versus the yen and peso, 0.2% vis-a-vis the loonie, and 0.1% against the yuan. The dollar also extended its uptrend against several developing country currencies like the South African rand and South Korean won. Alternatively, the dollar dipped 0.2% against […] More

Many Industrial Production Reports as Well as U.S. Jobs Day

January 10, 2020

Markets marked time ahead of the U.S. December labor market statistics. The dollar didn’t react much afterward, either. As of 08:10 EST, the dollar was up 0.2% against the Swiss franc and 0.1% relative to the euro and yen. The greenback was unchanged vis-a-vis the loonie and kiwi but down by 0.3% against the peso […] More

Israeli Central Bank Interest Rate Left Unchanged but Released Statement Is Decidedly More Dovish

August 28, 2019

The Monetary Committee’s assessment is that in view of the turnaround in the inflation environment in Israel and in the monetary policies of major central banks, the slowing in the global economy, and the continued appreciation of the shekel, the interest rate will not be increased for an extended period. Moreover, if necessary, the Committee […] More