Israel Zinssatz

The Bank of Israel kept the policy rate at 4.5% on April 8th 2024 for the second consecutive meeting, after a 25-basis point cut in early January. The decision aims to support economic activity, reduce uncertainty and stabilize prices in light of the current war. Despite inflation being currently within the target range at 2.5%, inflation expectations from various sources for the next year has increased to be around the upper bound of the target range. Policymakers noted that risk of accelerated inflation exists due to the war, depreciating shekel and rising oil prices. Meanwhile, the GDP is expected to grow by 2% in 2024 and by 5% in 2025.