Strong Shekel Will Delay Return to Inflation Goal, BOI Says

  • Israel central bank official Andrew Abir comments in interview
  • Inflation target is 1%-3%; prices rose 0.1% in January

Shekel currency banknotes at Israel's central bank in Jerusalem, Israel, on Aug. 19, 2013.

Photographer: Ariel Jerozolimski/Bloomberg
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The shekel’s recent rally means it will likely take longer for Israel’s inflation rate to reach the target range, according to a senior official at the central bank.

The shekel gained 3.5 percent against the dollar in February, the second-biggest gain in an expanded basket of major currencies tracked by Bloomberg, after Israel’s economy unexpectedly grew 6.2 percent in the fourth quarter.