On Monday, April 11, the Monetary Commission of the Bank of Israel raised the interest rate by 0.25 points, and it amounted to 0.35%. The discount rate from April 2020 to today has been at the level of 0.1%. Note that this was an expected step after three weeks ago the US Federal Reserve announced an increase in the discount rate to 0.25-0.5%.
The report of the Bank of Israel says that inflation has risen in recent months, but its pace is lower than in most countries of the world. The inflation rate has overcome the upper limit of current inflationary expectations and is at the level of 3.5%. At the same time, the annual indicator is close to the upper limit of inflation expectations.
The specialists of the Bank of Israel also note that since the last decision on the discount rate, the shekel has weakened against the dollar by 0.5%, while the national currency has strengthened against the euro by 3.8%.
The research department of the Bank of Israel has made changes to the macroeconomic forecast, according to which in 2022 GDP will grow by 5.5%, and in 2023 by 4%.
Real estate prices continue to rise, over the past 12 months they have grown by 13%.
The Bank’s specialists also note that the unemployment rate and the labor market have almost returned to pre-crisis levels.