Bank of Israel likely to cut rates for first time since 2015
The move would represent a response to a stronger shekel ILS= that has helped to push the inflation rate close to zero.
By REUTERSAn Israel Shekel note(photo credit: REUTERS/THOMAS WHITE)
JERUSALEM - Israel's central bank is expected to lower short-term interest rates next week for the first time in nearly five years in response to a stronger shekel ILS= that has helped to push the inflation rate close to zero.Ten of 16 economists polled by Reuters said policymakers would reduce the benchmark interest rate ILINR=ECI by 15 basis points to 0.1% when it announces its decision at 4 p.m. (1400 GMT) on Monday. Six others believe the Bank of Israel will maintain the benchmark rate at 0.25%.After making a surprise increase from 0.1% last November, the monetary policy committee (MPC) has left the key rate unchanged in its seven subsequent meetings, the last being Oct. 7. The last time the MPC lowered rates was in February 2015, by 15 basis points to 0.1% -- where it stood until a year ago.
