JNS
This is the first time in more than a decade that the Bank of Israel raised the interest rate in two consecutive months.
The Bank of Israel Monetary Committee, led by bank governor Professor Amir Yaron, decided to increase the interest rate by 0.4%.
The rate increased from 0.35% to 0.7%—a more aggressive move than anticipated—reported the Israeli business daily Globes on Monday.
“Inflation in Israel is exceeding the upper bound of the target range, at 4% over the past 12 months,” according to the Bank of Israel. “With that, it remains significantly lower than in most advanced economies. One-year inflation expectations are around the upper bound of the target range. Longer-term expectations remain anchored within the target range.”
It added that “the war in Ukraine and lockdowns in China are increasing inflationary pressure, and leading to a slowdown in the pace of global economic activity.”
According to the report, this is the first time in more than a decade that the Bank of Israel raised the interest rate in two consecutive months.
Caption: Bank of Israel.
Credit: Ester Inbar via Wikimedia Commons.
