The Bank of Israel opted not to raise interest rates on Monday, a reversal from the yearlong set of rate hikes in response to inflation.
The central bank said it will keep interest rates at 4.75%. The Bank of Israel said “inflation is moderating” and is at 4.6% over the past 12 months.
“The Monetary Committee’s assessment is that the monetary tightening processes in Israel and abroad, and the moderation of demand, are working to moderate inflation,” said the bank in a press release.
At the same time, the Bank of Israel noted that inflation remains above its target range of 1-3%. This could indicate more rate hikes in the future. Central Bank Governor Amir Yaron told reporters on Monday that the bank may increase rates in the future.
