Central Bank Raises Base Rate By 25bp, Says Rate Path Will Depend On Data

The Bank of Israel matched the Fed's most recent move and raised its base rate by 25bp, while guiding that "the interest rate path will be determined in accordance with activity data and the development of inflation, in order to continue supporting the attainment of the policy goals."

• All economists polled by Bloomberg expected the Israeli central bank to deliver a 25bp rate hike. The shekel moved away from its best levels of the session in reaction to the rate announcement.
• The central bank said that "Economic activity in Israel is at a high level, and is accompanied by a tight labor market, although there is some moderation in a number of indicators. Inflation is broad and remains high."
• Its Research Department "revised its macroeconomic forecast, and presents two potential scenarios in view of the tremendous uncertainty due to the legislative processes regarding the judicial system and their economic implications."
• "The minutes of the monetary discussions prior to this interest rate decision will be published on April 17. The next decision regarding the interest rate will be published at 16:00 on Monday, May 22, 2023."
• More details can be found in the full statement - click here.