The Bank of Israel said it would leave its key interest rate at 1% for February 2014, as expected and despite calls by export and industrial lobby groups for a cut in interest rates to weaken the shekel.
The decision to keep the interest rate for February 2014 unchanged at 1% is consistent with the Bank of Israel's monetary policy, which is intended to entrench the inflation rate within the price stability target of 1–3 percent a year over the next twelve months, and to support growth while maintaining financial stability.
The shekel has strengthened about 1% against the dollar since the end of December, and exporters have said this has hurt their business and the overall economy, which relies heavily on exports.
