The Bank of Israel announced on Thursday that the interest rate for October will be unchanged at 0.75 percent.
In a statement announcing the October rate, the bank said the growing value of the shekel in recent months contributed to moderation of inflation. The statement explained that inflation is at the middle of its target range, excluding the effects of increased tax rates and seasonal adjustments. The actual rate of inflation "is expected to return to within the target range when the short-term effects of the increases in taxation have run their course.
"The statement adds, "The continued recovery in economic activity and the expectation of faster growth in Israel and world wide suggest that the current environment is one of recovery from the recession."