The Bank of Israel raises interest rates to the highest levels of the last 10 years
CCTV News Client reported that on October 3, local time, the Bank of Israel announced that it would raise the benchmark interest rate by 0.75 percentage points to 2.75% in response to the increased inflation rate of the country. This is Israel’s fifth rate hike this year, and the rate of 2.75% is the country’s highest in 10 years.
According to a report by the Bank of Israel, in the past 12 months, the Israeli inflation rate has reached 4.6%, exceeding the expected range due to internal and external factors such as the European energy crisis, monetary tightening policies in various countries, the conflict between Russia and Ukraine and the disruption of the global supply chain. The country’s latest consumer price index (CPI) shows that residential prices and rents have risen rapidly over the past 12 months and many costs, including energy, food, vegetables and transportation, have been at high levels.
Bank of Israel Governor Amir Yaron (Amir Yaron) stressed in the report that the Bank of Israel will continue to implement monetary tightening policy in accordance with the country and global economic conditions and will work to bring back the inflation rate. of Israel at the target range of 3%.
–
–
–
