No Bank of #Israel rate hike this week but tightening likely soon: Reuters poll | Reuters

No Bank of Israel rate hike this week but tightening likely soon: Reuters poll | Reuters

The Bank of Israel is expected to keep short-term interest rates unchanged this week, its 15th such decision in a row, although analysts believe rapid economic growth and rising inflation will push rates higher in the coming months.

All 16 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).

In keeping rates steady last month, Bank of Israel Governor Amir Yaron said Israel did not have an inflation problem like other countries and that allows for patience in examining the developments and in conducting monetary policy.

However, since the Jan. 3 decision, data showed that the annual inflation rate rose to 3.1% in January -- above the government's 1-3% target range and the first time it topped 3% since 2011.