BoI keeps rate unchanged, sees 5.5% growth in 2022

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
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