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Bank of Israel Holds Key Rate Amid Virus Surge

  • Bank said rise in morbidity adds “uncertainty” to economy
  • Monetary policy to remain accommodative for a prolonged time
Amir Yaron
Amir YaronPhotographer: Kobi Wolf/Bloomberg

The Bank of Israel held its benchmark interest rate at 0.1% to support Israel’s strong economic recovery amid a dramatic increase in Covid-19 cases. The recent increase in morbidity adds “a measure of uncertainty regarding economic activity in the short and medium terms,” and the monetary policy committee “will therefore continue to conduct a very accommodative monetary policy for a prolonged time,” the bank said in a statement accompanying its decision.  

All 10 economists surveyed by Bloomberg expected the base rate to remain unchanged.