Bank of Israel raises interest rate again, warns about judicial fallout

The OECD is predicting GDP growth rate to slow in Israel this year, while the Bank of Israel has worked out different scenarios based on fallout from the judicial reform controversy.
This picture taken on August 23, 2022 shows a view of the exterior of the headquarters of the Bank of Israel, the country's central bank, in Kiryat Ben-Gurion in Jerusalem. (Photo by AHMAD GHARABLI / AFP) (Photo by AHMAD GHARABLI/AFP via Getty Images)
This picture taken on Aug. 23, 2022, shows a view of the exterior of the headquarters of the Bank of Israel, the country's central bank, in Kiryat Ben-Gurion in Jerusalem. - AHMAD GHARABLI/AFP via Getty Images
Al Monitor: The Pulse of the Middle East
Al-Monitor Staff

Israel’s central bank raised its interest rate again on Monday. The bank has been aggressively raising rates for the past year to combat inflation. 

The Bank of Israel’s Monetary Committee raised the rate by 0.25% to 4.5%, citing “broad and high” inflation. The bank said that inflation is at 5.2% over the past 12 months. Annual inflation is slightly higher for nontradeable components such as housing and services. Inflation for these is 5.5%, according to a press release from the bank. 

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.

Videos

See more