The Bank of Israel has announced that the rate of interest it charges commercial financial institutions will stay at a quarter of a percent for the next two months. Announcing the decision, the bank noted, "The inflation rate has stabilized above the lower bound of the target range, notwithstanding the slightly lower than expected decline of 0.3 percent in the CPI for November," and said, "The Research Department forecasts inflation of 1.3 percent over the coming four quarters," explaining, "Continued wage increases and the economy being around full employment will support a continued rise in inflation toward the midpoint of the target range, as will the depreciation, to the extent it persists."
The bank also noted, "Since the increase in the interest rate, the nominal effective exchange rate has been relatively stable, after the shekel depreciated in the preceding weeks."