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.
