The Bank of Israel today (Monday) left the base interest rate in the economy at 0.75%, in line with early market expectations.
This is the first time the bank has announced its interest rate decision at 4:00 PM, while the stock market is still active.
The bank explains the decision to leave the interest rate unchanged by the latest macro data, which indicates a slight improvement in the economic situation, alongside stability in the dollar-shekel exchange rate.
Want more news, videos and stories? Join the Haredim 10 WhatsApp channel >>
""The data added in the past month indicate that in the first quarter there was a certain acceleration in the expansion of the economy, led by domestic demand and exports of services, while exports of goods stagnated," the interest rate announcement said. "Labor survey data continue to indicate a decrease in unemployment and an increase in employment. The number of Israeli salaried jobs recorded a relatively sharp increase in January, which was mainly reflected in industries operating in the local market, but there are no indications of an increase in wages, and the rate of growth in health tax receipts is still moderate.".
Regarding the housing market, the Bank of Israel writes: "Apartment prices continued to rise this month, and their annual rate of increase is around 6%-7%. The rate of mortgage take-up continues to be high, while the risk indices of new mortgages have stabilized at a lower level. Uncertainty continues regarding the impact of the policy measures that were decided on price levels and the volume of activity in the market.".
The increase in the consumer price index in March also allowed the Bank of Israel to avoid further interest rate cuts this month.
