Bank of Israel raises key rate to 1% amid economic rebound

The bank said the move comes as it pegged inflation in October at 2.9%, and said the inflation rate is expected to exceed its target of 1% to 3% in coming months
 
On 23 November, the Bank of Israel unexpectedly raised the benchmark interest rate for a second time since the global economy began to recover. The bank raised its key interest rate to 1%.
 
The bank said the move comes as it pegged inflation in October at 2.9%, and said the inflation rate is expected to exceed its target of 1% to 3% in coming months.
 
Bank of Israel Governor Fischer increased the lending rate by a .25% to 1%.
 
Fischer in August became the first central banker to boost the key rate since the beginning of the global economic recovery, raising it by a quarter point to 0.75% from a record low.
 
The decision will help to establishinflation one year ahead firmly within the target range.