Israel raises rates to 4%

The Bank of Israel increased its interest rate by 25 basis points to 4%, after inflation rose more than expected in July.

The central bank said: "The decision to raise the interest rate is intended to increase the probability of meeting the inflation target, in light of the acceleration in the actual inflation rate in recent months, and in expectations of inflation in the future."

The consumer price index rose by 1.1%, rather than 0.8% as was anticipated, buoyed by sharp increases in local pr