Bank of Israel expected to hold rates Monday, with hikes not far off - Reuters poll | Reuters
The Bank of Israel is expected to keep short-term interest rates unchanged this week, its 14th such decision in a row, although analysts are expecting a hawkish tone that could lead to higher rates in the coming months as inflationary pressures mount.
All 12 economists polled by Reuters forecast that 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).
While other countries have faced an inflation surge, Israel has not, largely due to a very strong shekel that has moved to a 26-year high against the dollar and kept import prices down. The annual inflation rate stood at 2.4% in November, well within an official 1-3% target.
Last month, Bank of Israel Governor Amir Yaron told Reuters that the central bank was in no rush to raise interest rates since inflation was under control. read more
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