Tuesday, March 29, 2011

Bank of Israel Raises Interest Rate 50bps to 3.00%

The Bank of Israel raised its monetary policy interest rate 50 basis points to 3.00% due to rising consumer and house price inflation. The Bank said the move was "consistent with the process of returning the interest rate to a normal range intended to position inflation firmly within the target range and to support the further recovery of economic activity, while maintaining financial stability.". Israel recorded inflation of  4.2% over the past 12 months, which is above the 1-3% official inflation target. Israel saw house price inflation of 16.3% over the past 12 months.



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