The Governor of the Bank of Israel, Prof. Amir Yaron, clarified on Wednesday that the Bank of Israel won't raise the interest rate in the near future. His statement comes on the background of the strengthening of the shekel, and the recommendations of foreign banks to purchase shekels.
"Since the interest rate decision, there has been an unexpected turn in inflation, with the June index falling 0.6%," Yaron said. "It has also been estimated that major central banks will again take expansionary measures, and in particular significant measures by the Federal Reserve. This has had a significant impact on the exchange rate which is also expected to affect the course of inflation. In light of these developments, I believe that for a prolonged period there will be no decision to raise interest rates. Furthermore, if necessary, we have more tools at our disposal."