Israel trims interest by 25 bps to 0˝%, aims to restore rate to target

By Susanna Moon

Chicago, July 28 – The Bank of Israel decided to cut interest by 25 basis points to 0˝%.

The move is in line with the bank’s monetary policy of returning the inflation rate to the price stability target of 1% to 3% per year over the next 12 months and “to support growth while maintaining financial stability,” according to a bank notice.

Inflation fell over the preceding 12 months to 0˝%, as expected, below the lower end of the target range. The Consumer Price Index excluding the housing component dropped by 0.2% over that period.

Meanwhile, real economic activity showed continuing moderate growth as in previous quarters.

The shekel strengthened by 0.8% this month and has appreciated by about 2% for the year to date.

This month, the International Monetary Fund again reduced its global growth and world trade forecasts for 2014, while leaving the 2015 projections unchanged, the bank said.

© 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.