Bethel Finance: Bank of Israel leaves interest rate unchanged

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Bethel Finance news:
The Bank of Israel has left its key lending rate unchanged for January 2012 at 2.75%. The decision is a surprise, as most analysts had expected a second consecutive 0.25% cut in the rate.

The Bank of Israel said in its announcement, "The decision to leave the interest rate unchanged at 2.75% for January 2012 following the cut in the rate last month is consistent with the interest rate policy that is intended to entrench the inflation rate within the price stability target of 13% inflation a year over the next twelve months, and to support growth while maintaining financial stability.

"The path of the interest rate in the future depends on developments in the inflation environment, growth in Israel, the global economy, the monetary policies of major central banks, and developments in the exchange rate of the shekel."