Israel - Tasa de Interés

The central bank of Israel left its benchmark interest rate steady at 0.25 percent on November 25th, surprising markets who expected a 15 bps cut. Annual inflation expectations remained stable around the lower bound of the target range, although the appreciation of the shekel continues to make it difficult to return inflation to the target range. The Bank also noted that Israel’s economy activity continues to grow at close to its potential rate, despite the negative global sentiment. The central bank added that it will be necessary to leave the interest rate at its current level for an extended period or reduce it to stabilize inflation.

The central bank of Israel left its benchmark interest rate steady at 0.25 percent on October 7th, in line with market expectations. Annual inflation is expected to decline in the next months, although the appreciation of the shekel is making it more difficult to return inflation to the target range. Also, the bank noted that the risks to the global economy increased, mainly due to a US-China trade war and uncertainty regarding Brexit. The central bank added that it will be necessary to leave the interest rate at its current level for an extended period or reduce it to stabilize inflation around the target.

The central bank of Israel left its benchmark interest rate steady at 0.25 percent on August 28th, in line with market expectations after inflation rate fell to 0.5 percent, the lowest since May of 2018 and below the government's 1-3 percent target. Policymakers forecast annual inflation rate to decline further in the coming months. The central bank added that the interest rate will not be increased for an extended period, and if necessary it will make monetary policy more accommodative in order to stabilize inflation around the target.

The central bank of Israel left its benchmark interest rate steady at 0.25 percent on July 8th, in line with market expectations after inflation rate jumped to 1.5 percent, the highest since December of 2013 and above the lower bound of the 1-3% target. Policymakers forecast annual inflation rate to decline in the coming months, but slightly above the lower bound of the target range. Over the next year, inflation is projected to be 1.4 percent. The central bank added that the shekel has been relatively stable against the dollar and the euro since the last meeting.

The central bank of Israel left its benchmark interest rate steady at 0.25 percent on May 20th, in line with market expectations, following a slowdown in inflation to 1.3 percent in April from 1.4 percent in March as the shekel continued to strengthen. Policymakers added risks to the global economy increased, mainly due to an escalation of the trade war between the US and China.

The central bank of Israel left its benchmark interest rate steady at 0.25 percent on April 8th, in line with market expectations, saying inflation stabilized above the lower limit of the target range of 1 to 3 percent. In February, annual inflation rate stood at a 1.2 percent and is expected to remain within the lower bound of the target in 2019 while medium and long-term expectations are slightly below the midpoint of the target range. Policymakers added main risks to both growth and inflation rates include an escalation of the trade war between the US and China, and Brexit.