Bank of Israel signals unlikely rate cuts
Bank of Israel officials have indicated that a rate reduction for the remainder of 2024 is unlikely. They warned that if inflation—currently at a rate of 3.5 per cent—remains elevated, further rate increases could be on the table.
During a meeting held on October 9, all five members of the Bank of Israel’s monetary policy committee voted to maintain the benchmark interest rate at 4.5 per cent. The minutes of this discussion, released on Tuesday, reveal the committee’s commitment to navigating the ongoing economic challenges.
“In view of the continuing war, the monetary committee’s policy is focusing on stabilising the markets and reducing uncertainty, alongside price stability and supporting economic activity,” the central bank stated in a press release accompanying the minutes.
As the situation unfolds, the Bank of Israel remains vigilant, emphasising its role in fostering a stable economic environment.
Attribution: Reuters
