Daily Israel Report
11:13
Reported

News Brief

  3/27/2012, Nisan 4, 5772

Prime Rate to Stay the Same in April


The Bank of Israel announced, Monday evening, that the interest it charges commercial banks will remain at 2.5 percent during the month of April. In a statement accompanying the announcement, the bank said, "The decision to leave the interest rate for April 2012 unchanged at 2.5 percent is consistent with an interest rate policy that is intended to entrench the inflation rate within the price stability target of 1–3 percent 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, monetary policies of major central banks, and developments in the exchange rate of the shekel."

The statement cited lack of change in the inflation rate for February and stable growth in economic activity, noting that the price of oil around the world could have an impact.