Bank of Israel Governor Amir Yaron today (Monday) published an update on the interest rate in the economy - and decided to leave it at 4%. <\/p>\n\n\n\n
Accordingly, the prime interest rate, from which most mortgage and loan interest rates in the economy are derived, also remains unchanged, at a rate of 5.51% per annum.<\/p>\n\n\n\n
The decision by the Bank of Israel's Monetary Committee was made despite the fact that inflation moderated greatly to 1.81% last month, partly due to tensions between the US and Iran.<\/p>\n\n\n\n
According to the Bank of Israel announcement, "The Monetary Committee's policy focuses on price stability, support for economic activity, and market stability. The interest rate path will be determined in accordance with the development of inflation, economic activity, geopolitical uncertainty, and fiscal developments.".<\/p>\n\n\n\n
The Monetary Committee's announcement noted that "Israel's risk premium, as reflected in the CDS spread and the dollar spread against US government bonds, has increased slightly in recent days due to geopolitical developments.".<\/p>\n\n\n\n
In early January, the Bank of Israel lowered the interest rate in the economy by a quarter of a percentage point. This was the second consecutive decrease and followed 14 consecutive decisions, over two years, in which the interest rate remained unchanged. <\/p>\n\n\n\n
The background to these decisions was the fact that inflation fell below the upper target, even after the interest rate cut in November.<\/p>\n\n\n\n
Finance Minister Bezalel Smotrich responded sharply: "The governor's decision to leave the interest rate at a high level is a wrong decision, which is not supported by the macro data of the Israeli economy. The shekel is strong, inflation is weakening and we are deep within the target range.". <\/p>\n\n\n\n
\""The main challenge today is the challenge of growth and the need is to make things easier for Israeli citizens, households, mortgage holders and small and medium-sized businesses. Credit is choking the economy and delaying recovery.".<\/p>\n\n\n\n
Smotrich added: "This is the time to embark on growth and give a significant boost to economic activity. There is currently no inflationary danger that justifies a restrictive monetary policy at this level. I call on the governor to reverse his decision and continue the trend of reducing interest rates. This is what is right for the market, this is what is right for the economy, and this is what is right for the citizens of the State of Israel and for the fight against the cost of living.". \u00a0<\/p>","protected":false},"excerpt":{"rendered":"\u05e0\u05d2\u05d9\u05d3 \u05d1\u05e0\u05e7 \u05d9\u05e9\u05e8\u05d0\u05dc \u05d0\u05de\u05d9\u05e8 \u05d9\u05e8\u05d5\u05df \u05e4\u05e8\u05e1\u05dd \u05d4\u05d9\u05d5\u05dd (\u05e9\u05e0\u05d9) \u05d0\u05ea \u05d4\u05e2\u05d3\u05db\u05d5\u05df \u05e2\u05dc \u05e9\u05d9\u05e2\u05d5\u05e8 \u05d4\u05e8\u05d9\u05d1\u05d9\u05ea \u05d1\u05de\u05e9\u05e7 - \u05d5\u05d4\u05d7\u05dc\u05d9\u05d8 \u05dc\u05d4\u05e9\u05d0\u05d9\u05e8 \u05d0\u05d5\u05ea\u05d4 \u05e2\u05dc 4%. \u05d1\u05d4\u05ea\u05d0\u05dd \u05dc\u05db\u05da \u05e8\u05d9\u05d1\u05d9\u05ea \u05d4\u05e4\u05e8\u05d9\u05d9\u05dd, \u05e9\u05de\u05de\u05e0\u05d4 \u05e0\u05d2\u05d6\u05e8\u05d5\u05ea \u05e2\u05d9\u05e7\u05e8 \u05e8\u05d9\u05d1\u05d9\u05d5\u05ea \u05d4\u05de\u05e9\u05db\u05e0\u05ea\u05d0\u05d5\u05ea \u05d5\u05d4\u05d4\u05dc\u05d5\u05d5\u05d0\u05d5\u05ea \u05d1\u05de\u05e9\u05e7 \u05e0\u05d5\u05ea\u05e8\u05ea \u05d2\u05dd \u05d4\u05d9\u05d0 \u05dc\u05dc\u05d0 \u05e9\u05d9\u05e0\u05d5\u05d9, \u05e2\u05dc \u05e9\u05d9\u05e2\u05d5\u05e8 \u05e9\u05dc 5.5%. \u05d4\u05d4\u05d7\u05dc\u05d8\u05d4 \u05e9\u05dc \u05d4\u05d5\u05d5\u05e2\u05d3\u05d4 \u05d4\u05de\u05d5\u05e0\u05d9\u05d8\u05e8\u05d9\u05ea \u05e9\u05dc \u05d1\u05e0\u05e7 \u05d9\u05e9\u05e8\u05d0\u05dc \u05d4\u05ea\u05e7\u05d1\u05dc\u05d4 \u05d7\u05e8\u05e3 \u05d4\u05e2\u05d5\u05d1\u05d3\u05d4 \u05e9\u05d4\u05d0\u05d9\u05e0\u05e4\u05dc\u05e6\u05d9\u05d4 \u05d4\u05ea\u05de\u05ea\u05e0\u05d4 \u05de\u05d0\u05d5\u05d3 \u05e2\u05d3 \u05dc-1.8% […]","protected":false},"author":53,"featured_media":796910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[3946,2412],"class_list":["post-1048335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-4","tag-3946","tag-2412"],"acf":[],"yoast_head":"\n