17-year record: The Bank of Israel raised interest rates today (Monday) for the tenth time in a row by a quarter of a percentage point. The interest rate will now stand at 4.75% - and the prime interest rate at 6.25%.
Bank Hapoalim estimated this week that the interest rate will continue to rise in the expected update in July - and will peak at 5%.
The bank's monetary committee decided to raise the interest rate in light of inflation data, with the consumer price index for April, published about two weeks ago, jumping twice as much as expected and increasing by 0.81%.
Previously, the interest rate was 4.51% per 30 days.
This is another severe economic blow to mortgage holders, loan holders - and small businesses.
The move is expected to affect hundreds of thousands of families, with the average Israeli mortgage monthly repayment having already jumped by 1,000 shekels since the increases began last year.
The president of the Contractors Association, Raul Srogo, responded: "The interest rate increase is leading to more and more construction companies, especially construction and infrastructure companies, ceasing their activities and risking collapse."
The president of the Manufacturers' Association said about the interest rate increase: "The interest rate tool has exhausted itself. It's time for the government to put its hand in its pocket and reduce costs that will help fight inflation."
English 
Hebrew