JERUSALEM (Reuters) – Bank of Israel left its benchmark interest rate at 0.1% for its seventh direct meeting Monday, following stronger-than-expected economic data that sparked hopes of a rapid reversal this year due to vaccines COVID-19.
All 15 economists surveyed by Reuters had said they expected the monetary policy committee to maintain stable levels after ever doing so from cutting them from 0.25% in early April last year. .
Central bank officials have said they are willing to reduce the high rate from low to zero or into negative territory despite a strong penny and three locks. Instead, they prefer to use other measures to stimulate the economy such as buying currency and government and corporate bonds.
The Israeli economy grew by around 2.4% in 2020, well below the Bank of Israel’s forecast of 3.7%.
Reporting by Steven Scheer; Edited by Hugh Lawson