The Bank of Israel left its key interest rate unchanged at 0.1% after its monetary policy meeting on October 8 due to lower inflation expectations.
In August, the consumer price index recorded 1.2%, in the lower part of the 1–3% target band. The central bank expects inflation to fall in the short term. “In the coming months, there is likely to be a transitory decline in the inflation rate to below the lower bound of the target range,” it said in the policy statement.
As a result, “the monetary