Economics
Bank of Israel Surprises With Rate Rise Before Transition
- Three of 18 economists surveyed predicted the increase
- Rate landscape has shifted for incoming Governor Amir Yaron
Photographer: Ariel Jerozolimski/Bloomberg
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The Bank of Israel raised its benchmark interest rate to 0.25 percent on Monday, an unexpected move that brought nearly four years of record-low borrowing costs to a close.
In tightening policy for the first time since May 2011, the central bank determined that inflation is stabilizing within the government’s target range and that the economy was strong enough to handle the change.