Bank of Israel leaves interest rates unchanged, citing Hamas war
Israel's central bank is concerned with the prospect of an extended war in the Gaza Strip and the depreciation of the shekel.
Israel’s central bank kept interest rates unchanged on Monday as the war with Hamas in the Gaza Strip continues, creating economic uncertainty in the country.
The Bank of Israel decided to keep interest rates at 4.75%, citing the effects of the war.
“In view of the war, the Monetary Committee’s policy is focusing on stabilizing the markets and reducing uncertainty,” read a press release. “The interest rate path, and the use of additional monetary policy tools, will be determined in accordance with this purpose and with developments in the war.”
The bank said much of the Israeli economy is functioning normally, but added that there is “great uncertainty” regarding the depth and duration of the war-related economic impact.
