The Bank of Israel’s five-member Monetary Committee has kept the benchmark interest rate for November unchanged at 0.1%.
The rate has remained unchanged since the bank cut it to its historic low in March. The decision to keep the interest rate for November 2015 unchanged at 0.1 percent is consistent with the Bank of Israel's monetary policy, which is intended to return the inflation rate to within the price stability target of 1–3 percent a year, and to support growth while maintaining financial stability.
In view of developments in the inflation environment, in growth in Israel and in the global economy, in the exchange rate, and in the monetary policy of the major central banks, the Monetary Committee’s assessment is that monetary policy will remain accommodative for a considerable time.
The Monetary Committee is of the opinion that the risks to achieving the inflation target remain high and the risks to growth have increased. 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 and will examine the need to use various tools 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 continue to keep a close watch on developments in the asset markets, including the housing market.
