Bank of Israel Keeps Lending Rate Unchanged

Photo Credit: Flash 90

The Bank of Israel kept its key interest rate unchanged at 0.1 percent this week but economists there hinted that after keeping the rate frozen for the past three and a half years, there may be a rise in the interest rate after the start of the new year.

The Bank’s economists said it intends to maintain its accommodative policy as long as necessary, in order to firmly stabilize the inflation environment within the target range.

However, it was noted that the rise in the inflation environment has continued, and is moving toward entrenchment within the price stability target range.