The interest rate in the economy is unchanged.
Growth forecast for 2022: 5.5%
The Bank of Israel has decided to leave the interest rate in the economy unchanged at 0.1%.
The Bank's Research Division estimates that growth in Israel in 2022 will be 5.5% and 5% in 2023.
The Bank also forecasts that inflation in the coming year will be at a moderate rate of about 1.6%
Between Ashkenazi
03/01/2022
Monday, 03 January 2022, 16:07 Updated: 16:26
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The Monetary Committee of the Bank of Israel decided today to leave the interest rate unchanged at 0.1%, according to data published by the Bank of Israel today.
The activity is made possible, according to the central bank's announcement, among other things, in light of the adaptation of most industries of the economy to activity alongside the epidemic. However, the increase in morbidity rates and transmission coefficients in the face of the "omicron" strain of the virus increase the risk of activity, and depending on their extent may even be of macroeconomic significance. These developments lead to an increase in uncertainty in the short and medium term regarding the intensity of economic activity in the economy.
The Bank of Israel reported to the public today that since the previous interest rate decision, inflation in Israel has stabilized in the vicinity of the target center, so that the November index fell by 0.1%.
Inflation in the last twelve months stands at 2.4% Inflation expectations for the coming year from all sources have fallen slightly and are within the target range: 1.6%.
However, the Bank reported that there was still a gap between the expectations derived from the capital market, and those inherent in the banks' internal interest rates and lower-level forecasts, but the gap narrowed during the period under review.
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Civil New Year, just before the corona rocked the world.
According to the bank, the Israeli economy has learned to run alongside the corona (Photo: ShutterStock)
As for economic activity, the Bank of Israel knew today that it continues to function properly.
The aggregate balance sheet of the Business Tendency Survey CBS continued to rise to a level similar to that which was not yet a crisis in -2019 corona. In light of the difficulties continuation of global supply chains increased the intensity of the limitation of equipment and raw materials reported by the companies.
In contrast, credit card purchases stabilized at Has been high since the end of October. However, with the spread of the Omicron strain in December, there has been a decline in purchases, mainly in the domestic tourism industries
.
Real estate project in Ramat Efal. Housing prices rose by 10.3%. Rental prices rose at a more moderate rate (Photo: Reuven Castro)
Unemployment, employment and housing
Despite the employment report published today by the CBS, according to which there was a slight increase of about 0.2% in unemployment, the Bank of Israel refers to labor market data for November which indicate a significant improvement in employment indices.
The
broad
unemployment rate
fell to 6.5% in November. increased and stands at 60.2%, the highest rate since the onset of sources, reflecting a gap of about 60 thousand persons average employment rate in -2019.
data on
the labor market
were released in the first half of the month of December showing a picture slightly less good, but different material: the number of vacancies continues to insist on a high level in November, and is higher than the months before the crisis. the high level of vacancies along with the decline in unemployment reflect the tightening of the labor market.
it should be noted that at least until September,
wages
(After neutralizing the effects of employed vehicles that characterized the period of the Corona crisis) Most industries did not deviate from the trend that characterized them before the crisis, but it is possible that at the end there is some acceleration in the rate of increase in some industries.
Apartment prices have
risen in the last twelve months by 10.3%, a significantly higher rate compared to the rate of recent years.
The volume of mortgages continued to be high in November, in line with the trend recorded from the beginning of 2021. Alongside this, the annual rate of increase in rental prices remained relatively moderate, although there was some increase in end data.
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Bank of Israel
Amir Yaron
Bank of Israel Governor
growth
interest