Economy News – Follow-up
The Central Bank of Israel has opted to maintain its short-term interest rates for the ninth consecutive time, citing a temporary increase in inflation amidst a moderate recovery in economic growth, influenced by the ongoing conflict in Gaza.
The benchmark interest rate remains steady at 4.50%.
In a recent statement, the Bank of Israel emphasized, “Given the continuation of the war, the monetary committee’s policy prioritizes market stability, the reduction of uncertainty, as well as price stability and support for economic activity.”
The bank further indicated, “Future adjustments to the interest rate will align with the degree to which inflation approaches its specific target, alongside the maintenance of stability in financial markets, economic activity, and fiscal policy.”
Earlier this year, the bank reduced the interest rate by 25 basis points in January 2024 in response to the slowdown in inflation and economic growth. However, it has since maintained the rate at its current level.
For more updates, subscribe to our channel on Tilekram.