Israel raises rates to highest level since 2008
Governor warns new government that markets expect fiscal responsibility
The Bank of Israel raised its headline rate by 75 basis points to 3.75% on January 2, in its seventh consecutive increase since April.
The rate is now at its highest level since 2008. The central bank has raised rates by a total of 365bp in this cycle.
BoI governor Amir Yaron cautioned Israel’s newly elected government that markets and international financial institutions would be watching its fiscal policy closely.
In its press statement, the Bank of Israel’s monetary policy committee noted
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