PrintIsrael's Central Bank Keeps Key Rate Unchanged at 4.50%
BY MT Newswires | ECONOMIC | 07/07/25 11:03 AM EDT11:03 AM EDT, 07/07/2025 (MT Newswires) -- Israel's central bank (BoI) said its Monetary Committee decided to leave the interest rate unchanged at 4.50% on Monday.
Economic activity continues to recover moderately against the background of high domestic and global uncertainty, wrote the BoI in its policy statement. The economy grew by 3.7% in Q1, close to the long-term growth trend.
However, the level of economic activity is about 4%lower than this trend line.
Inflation in the past 12 months declined to 3.1% year over year, which is above the upper bound of the target range.
According to the baseline scenario in the Research Department's revised staff forecast, GDP is expected to grow by 3.3$ this year, and by 4.6% in 2026. The debt-to-GDP ratio is expected to be about 70% at the end of 2025, and about 71% in 2026.
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