BoI keeps rate unchanged, sees 5.5% growth in 2022

Amir Yaron Photo: Bank of Israel spokesperson
Amir Yaron Photo: Bank of Israel spokesperson

The Bank of Israel is in no rush to raise the interest rate, which would strengthen the shekel, which is already appreciating because of the current account surplus.

The Bank of Israel Monetary Committee, headed by Governor Prof. Amir Yaron, has kept the interest rate unchanged at its historic low of 0.1% and expects an interest rate remaining at 0.1% or rising to 0.25% by the end of 2022.

The Bank of Israel Research Department forecasts 5.5% GDP growth in 2022, unchanged from the previous forecast, and sees 5% growth in 2023. The Bank of Israel predicts inflation of 1.6% in 2022 and 2% in 2023, in the middle of the 1%-3% annual target range.

The Bank of Israel has kept the interest rate unchanged while some central banks are already raising rates due to inflationary pressures. The Bank of Israel said, "The rate hikes are only in countries where inflation is substantially above the inflation target, while in Israel inflation is significantly lower than many countries in the world."

The Bank of Israel is in no rush to raise the interest rate, which would strengthen the shekel, which is already appreciating because of the current account surplus.

Published by Globes, Israel business news - en.globes.co.il - on January 3, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Amir Yaron Photo: Bank of Israel spokesperson
Amir Yaron Photo: Bank of Israel spokesperson
Ministry of Finance Jerusalem credit: Shutterstock Treasury sees Trump's tariffs cutting Israel's GDP growth

Amid the uncertainty that still surrounds the level of tariffs that would ultimately be imposed on Israeli goods, the annual damage to growth is estimated by the Finance Ministry at less than 0.5% of GDP.

French President Emmanuel Macron at the Paris Air Show in 2023 credit: Reuters Israel to scale down Paris Air Show presence

Due to President Emmanuel Macron's antagonism, Israel is reducing its presence at the exhibition, Ministry of Defense International Defense Cooperation Directorate (SIBAT) head Yair Kulas tells "Globes."

Jerusalem court cmplex credit: Zarhy Architects Tenders issued for two huge Jerusalem construction projects

The PFI tenders for the Gan Hotzvim tech campus and the courts complex include grants of NIS 1.7 billion for the winning bidders.

Israel Innovation Authority CEO Dror Bin Innovation Authority chief: Israel top for deep tech investment

Dror Bin told the Globes TECH IL conference that deep tech is the next wave for global tech and the rate of investment in Israel is the world's highest.

Gil Shwed and Nadav Zafrir credit: Menash Cohen With new CEO Check Point beats analysts in Q1

Revenue rose 6.5% and GAAP net profit rose 5% in Nadav Zafrir's first full quarter at the helm.

Nadav Zafrir credit: Niv Kantor Check Point CEO: We'll reinvent cybersecurity for the AI age

In his first interview since succeeding Gil Shwed, Nadav Zafrir was speaking at the Globes TECH IL Conference.

Tel Aviv light rail credit: Yossi Cohen Rishon Lezion to finance Red Line light rail extension

The Rishon Lezion Municipality will pay for part of the extension by marketing land above the planned underground depot.

Intel Haifa development center credit: Shutterstock Intel to cut 20% of workforce - report

"Bloomberg" reports that new CEO Lip-Bu Tan will announce the layoffs this week.

Healthee team credit: Healthee PR AI healthcare costs management co Healthee raises $50m

Healthee’s benefits and care navigation platform empowers employees and employers to make the most of their health benefits.

Former Shufersal CEO Itzik Abercohen credit: Eyal Izhar Competition Authority summons former Shufersal CEO to hearing

According to the indictment, Shufersal and Itzik Abercohen allegedly made public statements through which he attempted to reach arrangements to raise prices.

Reco founders Ofer Klein, Gal Nakash, and Tal Shapira credit: Elegant Photographics Israeli SaaS security co Reco raises $25m

The Tel Aviv-based company has developed a comprehensive application discovery engine capable of identifying and classifying over 50,000 applications, and providing visibility into an organization’s SaaS ecosystem.

Tel Aviv Stock Exchange credit: Tali Bogdanovsky TASE outperforms global markets in 2025

Boosted by the strong results of Israel's banks, the Tel Aviv Stock Exchange has demonstrated impressive resilience to domestic and foreign upheavals.

Metro credit: Bar Lavi Can Hyundai fill Metro vacuum created by China's exclusion?

The South Korean giant is reportedly eager to enter Israel's infrastructure sector but may not have the resources to dig the Metro tunnels.

Hero 120SF loitering munition  credit: Uvision Israeli firms to arm Germany with suicide drones

UVision's partnership with Rheinmetall and IAI's partnership with MBDA will help equip the German Army with an arsenal of loitering munitions.

Cipia Vision Credit: Company website Cipia Vision lays off 50% of workforce

The financially troubled Israeli auto-tech company raised NIS 68 million on the TASE in 2021 at a company valuation of NIS 354 million.

Israir aircraft credit: Moni Shafir Israir gets green light for Tel Aviv - New York flights

The US Department of Transport has approved US-Israel flights for the Israeli carrier.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018