Waiting anxiously:
according to the forecast of most economists, the Bank of Israel is expected to raise the interest rate today (Monday) at 16:00 by a sharp rate of 0.75% to 2.75%.
This is the fifth consecutive increase by the Bank of Israel, which is trying to curb the annual rate of inflation in Israel, which reached a level of 4.6% last month.
The interest rate is expected to continue to rise up to the level of 3.5%, and the Governor's goal is to reach a positive real interest rate (the Bank of Israel interest rate minus inflation).
The interest rate in Israel is expected to rise sharply even though the annual inflation rate is almost twice as low as in the US and the Eurozone, and the reason why the Bank of Israel still pursues such an aggressive interest rate policy is rooted in the governor's desire to bring the interest rate to a high level quickly (front loading countries).
Moreover, in the last two weeks the dollar has strengthened very much against the shekel, by more than 6%, to the level of 3.56 shekels, which makes the products imported to Israel more expensive and thus increases the inflationary pressures.
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