Israel Zinssatz

The Bank of Israel left its key interest rate steady at 4.5% for an eighth straight meeting on January 6th 2025, in line with market expectations. Policymakers expect the inflation rate to rise in the first half of the year particularly due to the increase in VAT, along with continued supply constraints and excess demand, before moderating to within the 1-3% target range during the second half of the year. Inflation in Israel eased to 3.4% in November. In addition, GDP is expected to grow by 0.6% in 2024 and 4% in 2025, slightly higher than the October forecast.