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Shekel Briefly Weakens After BoI MonPol Decision

ILS

USD/ILS moved to a new session high of ILS3.6614 but quickly faded the move in a short-lived reaction to the widely expected monetary policy decision from the Bank of Israel. The base rate was raised by 25bp to 4.75%, the highest level since 2006, while doing nothing to signal that the tightening cycle might be nearing its end. When this is being typed, USD/ILS trades +150 pips at ILS3.6571.

  • In the statement released after the meeting, Israel's central bank said that the "future 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," a verbatim reiteration of previous forward guidance.

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