The Bank of Israel on Sunday raised its benchmark interest rate by 25 basis points to 1.50%, taking most analysts by surprise who had predicted no change.
This is the fourth time since August last year the benchmark interest rate has been raised.
"The current increase is made against the background of growth that continues to become more firmly based, inflation expectations that are close to the upper limit of the target inflation range, and the rise in asset prices," the bank said in a statement.
"However, monetary policy continues to be expansionary even after this increase."
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.