BOI Again Holds Key Interest Rate at 4.75% During War
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.
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