Central Banks
Israel Halts Rate Cuts as Inflation Worry Stalks War Economy
- Narrow majority of analysts predicted second straight rate cut
- Heavy defense spending, risks of wider conflict prompt caution
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Israel’s central bank left interest rates unchanged, opting against a second straight cut because of concern that inflation might accelerate again as the war against Hamas continues.
The monetary committee left the key rate at 4.5%, a surprise for most economists in a Bloomberg survey who had predicted a reduction of a quarter percentage point. The shekel pared losses after the announcement and closed little changed against the dollar.