Bank of #Israel seen holding rates but some analysts call for a cut | Reuters

Bank of Israel seen holding rates but some analysts call for a cut | Reuters

The Bank of Israel is expected to leave short-term interest rates unchanged this week, its 13th such decision in a row, though some analysts believe it should cut rates to halt the shekel that stands at a 26-year high versus the dollar.

All 16 economists polled by Reuters believe the central bank's monetary policy committee (MPC) will keep the benchmark rate (ILINR=ECI) at an all-time low of 0.1% when the decision is announced on Monday at 4 p.m. (1400 GMT).

Before the last meeting on Oct. 7, analysts had widely believed the next change would be a hike as early as 2022 on the heels of rising inflation and a rapid economic rebound amid a widespread COVID-19 vaccine roll-out. One MPC members voted to raise rates to 0.25% at that meeting.

Since then, the shekel has gained as much as 7% versus the dollar to late 1995 levels and is the top performing emerging currency since the pandemic began, while inflation in October and third-quarter GDP growth were lower than expected.