The bank said the move comes as it pegged inflation in October at 2.9%, and said the inflation rate is expected to exceed its target of 1% to 3% in coming months
On November 23, the Bank of Israel unexpectedly raised the benchmark interest rate for a second time since the global economy began to recover. The bank raised its key interest rate to 1%.
The bank said the move comes as it pegged inflation in October at 2.9%, and said the inflation rate is expected to exceed its target of 1% to 3% in coming months.
Bank of Israel Governor Fischer increased the lending rate by a .25% to 1%.
Fischer in August became the first central banker to boost the key rate since the beginning of the global economic recovery, raising it by a quarter point to 0.75% from a record low.
The decision will help to establish inflation one year ahead firmly within the target range.
Courtesy of Port-2-Port
