Bank of Israel does not change the benefit of inflation amid rise

During the April, inflation rates were suddenly rising and the “Hamas Movement” in Israel and Gaza as a result of the continuous conflict of economic uncertainty, the Bank of Israel remains a major interest rate for the eleventh consecutive meeting.

According to Reuters, the Central Bank has decided to keep the short -term interest rate at 4.50 %.

After inflation declined in January 2024, the bank reduced the interest points by 25 basis points, and the slowdown in economic growth at the height of the Gaza War, which sustained its monetary policy, and insisted that he did not see additional facilities as long as inflation was higher than the target.

A total of 14 analysts have expressed their views that the bank will not change the interest rate.

The decision rises to 3.6 % in April, which exceeds the estimates of 3.1 percent, which is equivalent to the March rate, but is still higher than the government’s goal between 1 percent and 3 percent.

Due to the increase in taxes, electricity and water prices earlier this year, the prices of airline tickets last month, as a result of the cancellation of many foreign airlines to Tel Aviv.

With regard to financial performance, Israel’s GDP rose 3.4 percent on the first quarter of this year, in the light of the consequences of the war compared to the weak growth of one percent by 2024.

The banks’ Israel statement suggested that the state of the local and global level was recovering at a higher speed and financial activity was recovering at moderate speed.

He said, “Although the indications of moderation emerges, the labor market is still suffering from some weakness. The percentage of empty jobs has declined to the unemployed, but it is still high.

In the light of the continuation of the war, the monetary policy committee is focusing on the stability of markets, and to reduce uncertainty, as well as maintaining prices stability and supporting economic activities. The path of the future monetary policy is determined by the abolition of inflation from the specified target, the continuous stability of economic markets and the development of economic activities and economic policy.