Bank of Israel raised interest rate to 3.75%

That is after inflation reached a 5 1/2 year high and the economy grew faster than the bank had forecast
 
The Bank of Israel (BoI) raised its benchmark interest rate by a quarter of percentage point, the second increase in as many months, after inflation reached a 5 1/2 year high and the economy grew faster than the bank had forecast. The Jerusalem-based bank raised the rate to 3.75%.
 
Chambers of Commerce President Uriel Lynn said shortly after the Governor announced his decision that "Under the circumstances the governor had no choice". Lynn called upon the central bank and treasury to make a joint effort to lower interest rates: the Bank of Israel doesn't have the power to do it alone.
 
Governor Stanley Fischer, who cut the benchmark borrowing cost to a record level this year before reversing course last month, is struggling to slow inflation, which accelerated to 5.4% in May, while preventing a stronger shekel from crimping growth.