Low inflation to keep Bank of #Israel on hold for now | Reuters

Low inflation to keep Bank of Israel on hold for now | Reuters

The Bank of Israel left its benchmark interest rate (ILINR=ECI) at 0.1% for a 14th straight policy meeting on Monday, and said benign inflation meant it need not hurry to raise rates.

In contrast to elsewhere in the West, Israel's inflation is expected to remain low and within an annual target of 1%-3%, helped by the shekel's 26-year high to the dollar that is suppressing import prices.

"The situation in Israel is different, which allows us patience in examining the developments and in conducting monetary policy," Bank of Israel Governor Amir Yaron told a news conference after the decision.

"We are in a different place than countries with inflationary pressures, and this is an important advantage for Israel’s economy at this time," he said. "There is no inflation outburst."