The interest rate for March remained at 0.25%

The interest rate for March remained at 0.25%. This was the decision of the Monetary Committee of the Bank of Israel, headed by the Governor, Prof. Amir Yaron. According to the Research Department, which published last month, the interest rate is expected to rise to 0.50% in the third quarter of 2019 and to gradually increase to 1.25% by the end of 2020.
The updated macroeconomic forecast of the Research Division updated the growth forecast for 2019 slightly downward to 3.4%. When they estimate that inflation this year is expected to amount to 1.3%.
The Consumer Price Index (CPI) fell by 0.1 percent last month. Although this is less than the forecast initially estimated, the price index for the last 12 months is still 1.2 percent, below the inflation target range of 1-3 percent. In November, the bank raised the interest rate after three and a half years of tenure, before the new Governor Yaron was appointed, while the outgoing deputy, Dr. Nadine Bodo Trachtenberg, took his place.
The Monetary Committee noted that since the last interest rate decision, the shekel strengthened by about 2% in terms of the nominal effective exchange rate. If the appreciation continues, it may delay the rise in inflation towards the center of the target range.
The Bank of Israel continues to monitor developments in inflation, the real economy, the financial markets and the global economy, and will act to achieve monetary policy objectives in accordance with these developments . "