The Bank of Israel (BOI), Israel's central bank, said last Monday it would keep the benchmark interest rate for February unchanged at its record low level of 0.25% for the sixth month in a row.

The decision comes amid falling prices in Israel. The central bank repeated its guidance from December that the current rate "supports the continuation of the recovery in economic activity, and the return of inflation to within the target range."
 

The Bank of Israel (BOI), which cut its rate by 75 basis points in 2014, said recent data continued to point to an acceleration in economic activity in the fourth quarter of 2014. 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 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.