[Jerusalem 28th Reuters]-The Israel Central Bank decided to keep the policy rate <ILINR = ECI> unchanged at 0.25% on the 28th. Deferment continues 6 times. The central bank stated that it would not raise interest rates over the long term, citing risks to the global economy and global monetary easing in addition to lower inflation.
In a survey conducted by Reuters, all 12 economists expected deferment.
Israel's inflation rate was 0.5% in July, down from 0.8% in June and 1.5% in May. It is below the target of 1-3% by the government.
The central bank said in a statement that the Monetary Policy Committee decided not to raise interest rates over the long term, given changes in the domestic inflation environment, monetary policy of the world's major central banks, the global economic slowdown, and rising currency shekels. On top of that, he said he might introduce additional monetary policy as needed to bring inflation back to the target range.
For the past few months, the Israeli central bank has used the wording that the rate-raising path will be “gentle and cautious”. The statement of this statement will reverse this.
President Yaron suggested a possible rate hike in the coming months at the last monetary policy meeting held earlier this month. However, in addition to the rise in the shekel <ILS =>, the inflation of the United States, and the rate cut by the Federal Reserve Board (FRB), the Israel Central Bank issued a statement that it will not raise rates for a long time.
