The Bank of Israel left June benchmark lending rate unchanged, at 0.75%, as part of a plan that the central bank said was intended to keep the inflation target within the 1% to 3% range over the next 12 months and to “support growth while maintaining financial stability.”

The decision to keep the interest rate for June 2014 unchanged at 0.75 percent 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 path of the interest rate in the future depends on developments in the inflation environment, growth in Israel and in the global economy, the monetary policies of major central banks, and developments in the exchange rate of the shekel.

Economic growth declined to 2.1% in the first quarter from 2.9% in the previous three months, and according to a central bank forecast in March, will decelerate to 3.1% this year from 3.3% in 2013. Annual inflation unexpectedly slowed in April to 1%.