[Jerusalem 7th Reuters]-The Israel Central Bank decided to keep the policy rate <ILINR = ECI> unchanged at 0.25% on the 7th. Deferment continues 7 times. However, he expressed his view that interest rates may need to be lowered if domestic inflation continues to stagnate in a global low interest rate environment.
In a survey conducted by Reuters, 12 out of 13 economists expected deferment.
The central bank said in a statement, "Take additional steps to make monetary policy more relaxed if necessary." Central bank economists have revised their outlook on interest rate paths, saying that key policy interest rates may remain at 0.25% or fall to 0.1% throughout 2020.
The central bank is watching the domestic inflation environment and the currency shekel market, monetary policy of major overseas central banks, and the global economic slowdown. In order to support strong economic growth, it may be necessary to lower the policy interest rate so that the inflation rate stabilizes near the center of the target range. "
Israel's inflation rate fell to 1.5% in May, 0.8% in June, 0.5% in July, and then picked up to 0.6% in August. -3% is below.
Israel's economic growth forecast is 3.1% in 19 years and 3.0% in 20 years. The central bank has predicted a growth rate of 3.5% over the past 20 years.