Bank of Israel hikes interest rates to highest in 10 years
CCTV News Client reported that on October 3, local time, the Bank of Israel announced that it would raise the benchmark interest rate by 0.75 percentage points to 2.75% in response to the country’s rising inflation rate. This is Israel’s fifth rate hike this year, and the 2.75 percent rate is the country’s highest in 10 years.
According to a report by the Bank of Israel, in the past 12 months, Israel’s inflation rate has reached 4.6%, exceeding the expected range due to internal and external factors such as the European energy crisis, monetary tightening policies in various countries, the conflict between Russia and Ukraine, and the disruption of the global supply chain. The country’s latest consumer price index (CPI) shows that residential prices and rents have risen rapidly over the past 12 months, and many costs, including energy, food, vegetables and transportation, have hovered at high levels.
Bank of Israel Governor Amir Yaron (Amir Yaron) pointed out in the report, the Bank of Israel will continue to implement monetary tightening policy in accordance with the country and global economic conditions, and strive to return Israel’s inflation rate to the target range of 3%.
