The Bank of Israel keeps benchmark interest rate for August 2012 unchanged

The decision is consistent with the bank's interest rate policy
 
The Monetary Committee of the Bank of Israel set benchmark interest rate for August 2012 unchanged at 2.25%.
 
The decision to leave the interest rate for August 2012 unchanged at 2.25%, after reducing it the previous month, is consistent with the Bank of Israel's interest rate 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, the global economy, monetary policies of major central banks, and developments in the exchange rate of the shekel.
 
Against the background of the previous month's interest rate reduction and the recent weakness of the shekel, which are expected to assist the Israeli economy to deal with the difficulties it faces, the Monetary Committee assessed the economic factors and voted to leave the interest rate unchanged this month.
 
The Bank of Israel will continue to monitor developments in the Israeli and global economies and in financial markets, particularly in light of the increasing uncertainty in the global economy