Today (Monday) at 16:00 Bank of Israel Governor Prof. Amir Yaron is expected to raise the interest rate in the economy for the sixth time in a row since the beginning of the year. Most economists expect an increase of 0.5% to 3.25% - its highest level since September 2011, some estimates speak of a sharper increase of 0.75% following the acceleration of inflation in the last month.
In the last two decisions, we will recall, the Bank of Israel raised the interest rate by a sharp rate of 0.75% in order to reach a high interest rate in a short time and with the aim of curbing inflation in the economy.
According to the data of the Central Bureau of Statistics published last week, the annual inflation rate in Israel accelerated and stood in Israel in the last 12 months (October 2022 compared to October 2021) at 5.1%.
Beyond that, housing prices completed an annual jump of 19.8%.
As mentioned, the acceleration of inflation supports a sharp increase in interest rates, but on the other hand, since the last interest rate decision, the growth figures published last week together with the decrease in the employed rate indicate the beginning of the slowdown in the Israeli economy.
Moreover, the governor of the Bank of Israel said in the latest interest rate decision that the current interest rate is already considered an interest rate that "restrains" inflation.
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