Israel raises interest rates
The Bank of Israel's latest hike to battle inflation was the biggest in 20 years.
Israel’s central bank raised interest rates today in response to inflation in the country.
The Bank of Israel raised its rate by 0.75% to 2%. The financial institution said it is bullish on the economy’s overall growth, noting that gross domestic product grew 6.8% in the second quarter of 2022. However, the bank said that inflation was 5.2% over the past 12 months, which prompted the decision to hike rates, according to a press release.
Israel’s target range for inflation is 1-3%.
Why it matters: Inflation is increasing across the Middle East, in part due to global supply chain disruptions resulting from the Russian invasion of Ukraine.
