Bank of Israel to raise interest rate for the sixth time since April
To combat the ever-rising rate of inflation — which was last recorded at 5.1% as of October — the Bank of Israel will raise its interest rate on Monday.
By ZACHY HENNESSEY
Published: NOVEMBER 21, 2022
The Bank of Israel raised its interest rate by 0.5% on Monday in an effort to combat rising inflation. The new rate, 3.25%, was the sixth hike in a recent series of increases carried out by the BOI since April, when it was at a record low of 0.1% Consistently rising inflation surpassed 5.1% in October, the Central Bureau of Statistics reported.
“Inflation in Israel has still not reached its peak,” Psagot Investment House chief economist Guy Beitor said, adding that, according to the October statistics bureau report, food and housing prices are continuing to climb, Globes reported.
The heavy inflation has led the central bank to increase the interest rate in the hope that a steeper rate will lead to less borrowing, which would in turn lead to less inflation. However, a steeper interest rate may have other less-appealing consequences as well.
more............. https://www.jpost.com/business-and-innovation/banking-and-finance/article-722975
To combat the ever-rising rate of inflation — which was last recorded at 5.1% as of October — the Bank of Israel will raise its interest rate on Monday.
By ZACHY HENNESSEY
Published: NOVEMBER 21, 2022
The Bank of Israel raised its interest rate by 0.5% on Monday in an effort to combat rising inflation. The new rate, 3.25%, was the sixth hike in a recent series of increases carried out by the BOI since April, when it was at a record low of 0.1% Consistently rising inflation surpassed 5.1% in October, the Central Bureau of Statistics reported.
“Inflation in Israel has still not reached its peak,” Psagot Investment House chief economist Guy Beitor said, adding that, according to the October statistics bureau report, food and housing prices are continuing to climb, Globes reported.
The heavy inflation has led the central bank to increase the interest rate in the hope that a steeper rate will lead to less borrowing, which would in turn lead to less inflation. However, a steeper interest rate may have other less-appealing consequences as well.
more............. https://www.jpost.com/business-and-innovation/banking-and-finance/article-722975