Israeli central bank faces hard choices, analysts say

David Vaaknin

The Bank of Israel kept its policy rate unchanged at 0.25% on August 28, but it indicated a willingness to adopt future easing measures to boost below-target inflation.

In July, Israel’s consumer price index rose year on year by 0.9%, below the Bank of Israel’s annual inflation target of between 1% and 3%.

The central bank may need to contemplate using negative policy rates, one analyst told Central Banking, as several factors seem to be strengthening Israel’s shekel.

The bank’s monetary

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: