Leader: No 2019 Bank of Israel rate hike

Amir Yaron  photo: Rafi Kutz

Yonatan Katz believes that the Bank of Israel will keep the rate unchanged tomorrow at 0.25%, and predicts that the planned hike in 2019 will be postponed until early 2020.

The Bank of Israel Monetary Committee under Governor Prof. Amir Yaron meets tomorrow to announce its latest interest rate decision. Not only does Leader Capital Markets macroeconomist Yonatan Katz believe that the Bank of Israel will keep the rate unchanged at 0.25%, he predicts that the planned hike in 2019 will now not be implemented and postponed until early 2020. Katz forecasts two rate increases in 2020.

The Bank of Israel Monetary Committee raised the interest rate from the record low of 0.1% to 0.25% in November 2018, the last interest rate decision under Governor Karnit Flug, who had kept the rate unchanged since March 2015. Last November's rate hike was the first hike since June 2011.

The Bank of Israel had planned to raise the rate again in 2019. But with the US Federal Reserve, which had been talking about three rate hikes in 2019, now talking about cutting the interest rate, on concerns about US growth and under pressure to do so from President Trump, the Bank of Israel is altering its outlook.

Published by Globes, Israel business news - en.globes.co.il - on July 7, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Amir Yaron  photo: Rafi Kutz
Amir Yaron photo: Rafi Kutz
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018