Bank of Israel lowers its benchmark interest rate to 2% for November

By Tali David

Minneapolis, Oct. 29 - The Bank of Israel reduced its benchmark interest rate by 25 basis points to 2% for November.

As reported, the rate was cut by 25 bps in July.

According to a bank press release, the Consumer Price Index was unchanged in September.

The rate of inflation over the last 12 months was 2.1%.

Forecasts of the inflation rate over the next 12 months declined after the publication of the CPI for September, from around 2.5% to around 2.1%.

According to the statement, prices are expected to increase by 30 bps over the next three months. Inflation expectations for two years and longer remained stable around 2½%.

The decision to decrease the interest rate for November to 2% is consistent with the Bank of Israel's interest rate policy, which is intended to entrench the inflation rate within the price stability target of 1% to 3% per year over the next 12 months and to support growth while maintaining financial stability.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.