UPDATE 1-Bank of #Israel holds rates, sees economic risks from Delta variant | Reuters

UPDATE 1-Bank of Israel holds rates, sees economic risks from Delta variant | Reuters

The Bank of Israel left its benchmark interest rate at 0.1% for an 11th straight policy meeting on Monday, citing higher inflation but uncertainty over economic activity due to an increase in COVID-19 infections from the Delta variant.

All 15 economists polled by Reuters had said they expected the monetary policy committee to keep rates steady after doing so ever since cutting them from 0.25% more than a year ago. The next policy move is widely expected to be a rate hike in 2022 or 2023.

The economy grew an annualised 15.4% in the second quarter from the prior three months after a small first-quarter contraction.

“There are still challenges to economic activity in view of the increased health risks in Israel and abroad,” the central bank said, adding it would “continue to conduct a very accommodative monetary policy for a prolonged time.”