The Monetary Committee, Bank of Israel, headed by the ruler, Mr. Amir Yaron, announced that it has kept the interest rate unchanged at 4.5 %, as expected. This is the ninth consecutive time when the Bank of Israel left the interest rate unchanged, after lowering it from 4.75 % in January 2024.
The decision was expected to be the annual rate of inflation in Israel relatively high by 3.8 %, which is much higher than the annual target of the Bank of Israel to 3 % enlargement, and it was not left room for relaxation in monetary policy. However, Bank of Israel said that inflation is expected to enter the target scope in the second half of 2025.
The Bank of Israel said in its decision, “In light of the ongoing war, the monetary committee’s policy focuses on stabilizing the markets and reducing uncertainty, in addition to the stability of prices and support for economic activity. Economic and financial policy.
The Bank of Israel added, “The economic activity continues to recover in a moderate manner in light of the geopolitical developments. Big by increasing imports
“At the same time, the previous GDP data was reviewed, with a 1 % GDP in 2024.”
The Bank of Israel also indicated, “Since the previous interest rate decision was 1.9 % for the US dollar. Shekel was also estimated at 1.3 % against the euro, and 1 % in terms of the actual nominal exchange rate.
“The installment of Israel, as measured by the price of the CDs for a period of 5 years, and between the differences of government bonds from the dollar, continued to decline, but it remained higher than the pre -war period.”
On housing prices, the Bank of Israel said, “The prices of homes increased by 7.3 percent in 2024. The activity in the construction industry is still affected by the lack of employment, but the difference between the number of people working in the construction industry and their number in advance was narrowed by the war.”
Analysts expect the Bank of Israel to start reducing the interest rate in the second half of 2025.
It was published by Globes, Israel Business News – En.globes.co.il – on February 24, 2025.
© Copy Publish Publisher Itonut (1983) Ltd. , 2025.