Israel keeps interest rate constant despite increasing inflation

ISTANBUL

Israel’s central bank on Monday kept its policy interest rate unchanged at 4.5% on Monday despite increasing inflation rate in the country.

The Bank of Israel decided to keep the rate constant for the 11th consecutive meeting since January 2024, when the bank lowered the rate by 25 basis points.

The annual inflation rate was 3.6% in April in the country, above market expectations of 3.2%, up from 3.3% in March.

While the inflation rate was below the 3% level in the first half of 2024, it has been hovering between 3.2% and 3.8% since July 2024.

The bank said the labor market remains tight in the country.