The Bank of Israel Monetary Committee has decided on an interest rate rise of 0.25% to 0.35%. This is the first interest rate rise since 2018. It is slightly larger than analysts had expected - the consensus was that the rate would be raised to 0.25% - although there were those who believed that conditions in the economy allowed the central bank's interest rate to be raised immediately to 0.5%. The Bank of Israel maintained its moderate line because inflation in Israel is low in comparison with elsewhere in the world. A steeper rise in the interest rate would have led to a strengthening of the shekel, which the Bank of Israel wishes to avoid. RELATED ARTICLES Bank of Israel interest rate hike looks inevitable Israel's February CPI reading higher than expected Israel's fiscal deficit shrinks further Israel's economy grew 8.1% in 2021 The Bank of Israel Research Department has revised its and now sees GDP growing by 5.5% in 2022, and by 4% in 2023. The adjusted employment rate is expected to continue increasing slightly, to 61% at the end of 2023. The inflation rate is expected to be 3.6% in 2022, and 2% in 2023, while the debt to GDP ratio is expected to be 67% in 2022 and 65% 2023. Published by Globes, Israel business news - en.globes.co.il - on April 11, 2022. © Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
