Israel’s benchmark interest rate remained unchanged last month, industry data showed on Monday.
In a report, Bank of Israel said that Israeli interest rate decision remained unchanged at a seasonally adjusted 0.75%, from 0.75% in the preceding month.
Analysts had expected Israeli Interest Rate Decision to remain unchanged at 0.75% last month. The decision to keep the interest rate for July 2014 unchanged at 0.75% 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% 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.
The Bank of Israel will continue to monitor developments in the Israeli and global economies and in financial markets. The Bank will use the tools available to it to achieve its objectives of price stability, the encouragement of employment and growth, and support for the stability of the financial system, and in this regard will keep a close watch on developments in the asset markets, including the housing market.
