Israel keeps interest rates unchanged for 4th time

By Tuba Ongun

The Central Bank of Israel on Monday left its key interest rate unchanged for the fourth straight meeting despite the Gaza conflict's "significant economic consequences, both on real economic activity and on the financial markets."

The policy rate remained steady at 4.75% during the bank's November meeting, marking the highest level since 2006.

"There is great amount of uncertainty with regard to the expected severity and duration of the war, which is in turn affecting the extent of the impact on activity," the bank said in a statement.

The bank also adjusted its gross domestic product (GDP) growth projections, lowering them to 2% for both 2023 and 2024, down from the previously projected 2.8%.

It had hiked the benchmark rate for 10 consecutive times from 0.1% in April 2022 until July 2023.