Israel raises interest rates, following Gulf, US
Inflation is rising throughout the Middle East and many countries' central banks are raising interest rates in response.
The Bank of Israel raised its main interest rate 0.5% on July 4 to 1.25% in a bid to fight inflation and rising housing costs.
The move follows the central bank raising rates 0.4% in May, which was the largest hike since 2011. Inflation reached 4% in April, which is also the highest level in a decade. The Bank of Israel cited effects of the Russian invasion of Ukraine and a manufacturing slowdown in China as reasons for the action.
This comes after the US Federal Reserve raised its rate by 0.75% on June 15. The next day in response, several Gulf central banks raised their policy rates.
The Central Bank of the United Arab Emirates raised its overnight deposit rate 0.75%. This rate applies for the UAE Central Bank’s loans to other banks.
