Israel keeps interest rate steady

Israeli Central Bank says monetary committee left rate unchanged at 4.5% but says conflict with Hamas is causing trouble

By Gokhan Ergocun

ISTANBUL (AA) - The Bank of Israel kept its policy interest rate unchanged at 4.5% on Monday, after evaluating its impact on economic activity and inflation.

According to a press release, the bank said the conflicts between Israel and Hamas are causing it difficulty.

"The war brings with it marked economic ramifications as well. It impacts on economic activity overall and on the financial markets, and the uncertainty remains high," it noted.

Israel's annual inflation rate was at 2.6% in January and 3% in December.

"GDP was notably adversely impacted in the final quarter of 2023, so that GDP grew by 2 percent in 2023," it added.

The ongoing Gaza war, which started on Oct. 7, has caused the Israeli economy to contract 19.4% in the last quarter of 2023.

Israel has refused in the months since to end its offensive on the Gaza Strip, which has taken the lives of nearly 30,000 people.

Kaynak: