The Monetary Committee of the Bank of Israel decided on Monday to leave the interest rate the bank charges commercial institutions at a tenth of a percent. According to a statement accompanying the announcement, "The annual inflation rate is slightly below the target, but the inflation environment remains low: inflation expectations for up to the third year remain below the target range. The increase in nominal wages, the strong economic environment, and inflation worldwide will act to increase the inflation rate, while the appreciation that has occurred in the shekel, increased competition in the economy and measures adopted by the government to reduce the cost of living will act in the opposite direction."
The bank noted, "Indicators of activity point to continued economic growth at a solid pace in the second quarter as well, and the labor market remains strong. Over time, growth of exports has been based on growth of services exports, while goods exports have essentially stood still." As for external factors, "The global economy continues its moderate improvement, and there is an increase in the growth rate of world trade."