By CentralBankNews.info
Israel’s central bank held its benchmark interest rate steady at 1.0 percent, as widely expected, citing low inflation expectations, continued moderate economic growth, an appreciation of the shekel currency, moderate upward global growth revisions and a rise home prices and mortgages granted.
The Bank of Israel (BOI), which cut its rate by 75 basis points in 2013, reiterated that it would keep a close watch on developments in asset markets, including the housing market, and continue to monitor the Israeli, the global economy and financial markets “particularly in light of the continuing uncertainty in the global economy.”
Israel’s inflation rate eased to 1.8 percent in December, slightly below the BOI’s 2.0 percent midpoint of its 1-3 percent target range, from November’s 1.9 percent.