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According to sources — after a period of several months keeping interest rates steady at 0.25 percent, the Bank of Israel lowered its rate to 0.1 percent, the lowest in Israel’s history.
This new interest rate is 0.4 percentage points lower than it was during the climax of the global financial crisis in 2009, when Stanley Fischer was at the forefront of the bank.
The bank made the following Statement…
“The decision to reduce the interest rate for March 2015 by 0.15 percentage points to 0.10 percent is consistent with the Bank of Israel’s monetary policy, which is intended to return the inflation rate to within the price stability target of 1 to 3 percent a year over the next 12 months, and to support growth while maintaining financial stability,”
“The path of the interest rate in the future depends on developments in the inflation environment, growth in Israel and in the global economy, the monetary policies of major central banks, and developments in the exchange rate of the shekel.”