The Bank of Israel announced, Monday, that its Monetary Committee has decided to keep the rate it charges commercial banks at three quarters of a percent for the month of April. The bank said, in a statement, that the decision "is consistent with the Bank of Israel's monetary policy, which 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 statement cited the two-tenths-of-a-percent drop in the consumer price index for February, adding, "The inflation environment is located within the bottom portion of the target range, and it is likely that over the next several months, inflation over the preceding 12 months will decline temporarily to below the target range, though it is expected to return to within the target toward the beginning of 2015. Inflation expectations for one year ahead are within the target range, below the midpoint of the inflation target." Reflecting on the recovery in consumer spending and exports, the bank noted, "The housing market policy steps being considered are likely to lead to volatility in volumes of activity and in prices in the market in coming months."