Bank of Israel may raise interest rates soon
Media reports indicate that Israel’s central bank will soon raise rates to counter rising inflation.
The Bank of Israel Israel may raise interest rates in response to inflation, indicating a departure from previous statements from bank officials.
The central bank’s deputy governor, Andrew Abir, told a press conference yesterday, “Due to recent inflationary developments, the process of monetary tightening might be faster than we thought,” the Israeli business news outlet Globes reported.
Central banks typically raise interest rates in response to inflation in an effort to decrease spending.
Abir’s remarks constitute somewhat of a departure from past comments he has made on inflation and interest rates. In February, Abir told Globes that at 2.8%, inflation was within the bank’s acceptable range of 1-3% and it was therefore not planning to raise interest rates. However, Abir told Bloomberg the same month that the bank may adjust its forecast to account for expected higher inflation.
