Minutes Show That Bank Of Israel Voted 4-1 To Keep Rates Unchanged On July 10

The minutes of the Bank of Israel's most recent monetary policy meeting concluded on July 10 showed that four members supported the decision to keep the base rate unchanged at 4.75%, while one dissenter voted for a 25bp rate hike.

• "The Committee discussed the inflation rate in Israel (4.6 percent), which is above the upper bound of the target range, and various signs of its moderation. It was noted that the CPI for the month of May was below forecasts."
• "The Committee assessed that the interest rate in the economy is at a restrictive level, appropriate for the moderation of inflation over the coming year so long as there aren’t significant changes in activity or in inflation."
• "The Committee noted that the depreciation of the shekel continues to be a significant factor delaying the convergence of the inflation rate back to the target. The Committee’s assessment is that the trend of depreciation in the shekel partly reflects some increase in the economy’s risk premium."
• "The Committee noted the environment of high uncertainty and was of the opinion that should there be additional developments, beyond those currently expected, in the path of inflation and its convergence, the Committee will have to enhance the monetary tightening."
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