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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.
Traders work on the floor of the New York Stock Exchange on June 15, 2022.

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. 

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