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Economics

Israel Pauses After 10 Rate Hikes, Warns It May Not Be Done

  • Record run of monetary tightening ends after slower inflation
  • Currency declines complicate the central bank’s planning
Israel central bank in Jerusalem.

Israel central bank in Jerusalem.

Photographer: Ariel Jerozolimski/Bloomberg 

Updated on

Israel’s central bank left interest rates unchanged for the first time in over a year, halting an unprecedented cycle of monetary tightening but signaling it’s still on alert for the threat of faster inflation.

The decision to hold the benchmark at 4.75% was in line with the forecasts of most economists surveyed by Bloomberg. The monetary committee warned, however, that it’s possible rates may need to rise further yet.