Israeli rates hit record low with half-point cut

The Bank of Israel cut its base rate to a new low of 3.25% on Monday 24 March.

Analysts were divided on whether the central bank would cut by more than a quarter-point. The central bank said that a fall in the consumer price index last month justified the more severe move of a 50 basis-point cut.

The consumer price index fell by 0.2% last month, but inflation for the year to February rose to 3.6%. The central bank said it expected inflation to fall further in March.

"The forces that served to