Central Banks
Israel Holds Rates to Protect Shekel as War Spending Soars
- The Bank of Israel opts to keep its key interest rate at 4.5%
- Shekel extends gains and reverses its losses from last week
The Bank of Israel.
Photographer: Ahmad Gharabli/AFP/Getty ImagesThis article is for subscribers only.
Israel refrained from cutting interest rates on Monday, with the central bank focusing on protecting the shekel and cooling inflation expectations as the war in Gaza causes defense spending to surge.
The Bank of Israel’s Monetary Policy Committee left its key rate at 4.5% for the second consecutive meeting. Only a narrow majority of analysts, including JPMorgan Chase & Co., predicted the move. The others expected a cut of 25 basis points.