Bank of Israel Governor Prof. Amir Yaron surprised forecasts and today (Monday) lowered the interest rate in the economy by a quarter of a percentage point. The interest rate now stands at 41.3%.
This is the second time in a row that the governor has lowered the interest rate - after 14 consecutive decisions, over two years, in which the interest rate remained unchanged. About a month and a half ago, the Bank of Israel announced the first interest rate cut in the economy in almost two years - from a level of 4.5% to a level of 4.25%.
The background to the decision is the fact that inflation is currently below the upper target, even after the interest rate cut in November.
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Finance Minister Bezalel Smotrich commented on the interest rate cut: "I congratulate the Governor of the Bank of Israel, Prof. Amir Yaron, on his correct and necessary decision to lower the interest rate again. Our correct and professional conduct as a government reduces the deficit and inflation and increases growth.
""Lowering the interest rate is what is needed right now - both for growth and to ease the burden and lower the cost of living for Israeli citizens.".
