BoI hikes rate for first time in four years

The Bank of Israel Monetary Committee has decided on an interest rate rise of 0.25% to 0.35%. This is the first interest rate rise since 2018. It is slightly larger than analysts had expected – the consensus was that the rate would be raised to 0.25% – although there were those who believed that conditions in the economy allowed the central bank’s interest rate to be raised immediately to 0.5%. The Bank of Israel maintained its moderate line because inflation in Israel is low in comparison with elsewhere in the world. A steeper rise in the interest rate would have led to a strengthening of the shekel, which the Bank of Israel wishes to avoid.







The Bank of Israel Research Department has revised its and now sees GDP growing by 5.5% in 2022, and by 4% in 2023. The adjusted employment rate is expected to continue increasing slightly, to 61% at the end of 2023. The inflation rate is expected to be 3.6% in 2022, and 2% in 2023, while the debt to GDP ratio is expected to be 67% in 2022 and 65% 2023.

Published by Globes, Israel business news – en.globes.co.il – on April 11, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.


The Bank of Israel Monetary Committee has decided on an interest rate rise of 0.25% to 0.35%. This is the first interest rate rise since 2018. It is slightly larger than analysts had expected – the consensus was that the rate would be raised to 0.25% – although there were those who believed that…

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