Bank of Israel cut rates despite 'rapid' increase in house prices

Slowing economy trumped rising real estate prices in Israel rates decision


Uncertainty about European recovery and weak data across a range of economic indicators prompted the Bank of Israel to reduce its benchmark interest rate by 0.25 percentage points to 0.75% on February 24 – despite a "rapid" increase in home prices and high mortgage volumes, minutes of the monetary policy committee meeting note.

Four of the five committee members supported the decision, citing "the decline in the inflation environment, the slowdown in GDP growth, the weakness in the labour market

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