Bank of Israel – Monetary Policy Report (August 2011)

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The Bank of Israel's Monetary Policy Report for the first half of 2011, published on Tuesday, said the central bank's decision to hike interest rates by 1.25% in 2011 was justified given the rising level of inflation in the economy.

The report said consumer price inflation in Israel rose by 2.2% over the course of the period reviewed. It said the rise in prices was predominately driven by housing, as well as by external factors, such as commodity and energy prices. During the same period the

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