The Bank of Israel lowered the interest rate today (Monday) by 0.25% - to a level of 3.5%.
The bank's monetary committee decided to lower the interest rate after inflation stabilized at the center of the target range set by the bank - 1.91% and continued moderate recovery of activity in the economy.
The bank was content with lowering the interest rate by 0.251% despite pressure from factors in the economy, primarily exporters, to lower the interest rate more sharply.
Finance Minister Bezalel Smotrich said: "We at the Ministry of Finance see the movements in the economy and our situation in relation to the global economy, and therefore I have urged the Bank of Israel to sharply lower the interest rate. The minimal reduction in the interest rate does not correspond to the challenges of households and businesses, is not connected to the needs of the economy and makes it difficult for the high-tech and export sectors. Reducing the interest rate by a sharp rate is the right step that will ease the cost of living and balance the strengthening of the shekel.".
Last May, the Bank of Israel decided to lower the interest rate by 0.25% to 3.75%. This was due to the decline in inflation and the strengthening of the shekel.
