BOI Again Holds Key Interest Rate at 4.75% During War

The Bank of Israel building. (REUTERS/Ronen Zvulun/File Photo)

YERUSHALAYIM (Reuters) – The Bank of Israel kept short-term borrowing rates unchanged for a fourth straight decision as expected on Monday, as policymakers remained focused on maintaining financial stability during Israel’s war against Hamas.

The central bank held its benchmark rate at 4.75% – its highest level since late 2006. It had raised rates 10 straight times in an aggressive tightening cycle that has taken the rate from 0.1% last April before pausing in July and again in August and October.

The inflation rate eased to 3.7% in October from 3.8% in September to remain above an annual target range of 1-3%.

Officials have cautioned that steep rate cuts at the moment would weaken the shekel and push up inflation.

To Read The Full Story

Are you already a subscriber?
Click to log in!