MoneyIsrael news photo: Flash 90

With just one day left before the holiest day in the Jewish calendar -- the Day of Atonement, Yom Kippur -- the Bank of Israel announced prime interest rates would remain unchanged at 2.25 percent for the month of October.

In addition, the Bank's Research Department also put a brighter outlook on the current year, having revised its growth forecast, raising it to 3.3 percent for 2012 from its previous 3.1 percent.

However, the Bank remained cautious about the prospects for 2013, and lowered its growth forecast for next year from 3.4 percent to just 3 percent due to developments in Europe.

The Bank's Monetary Committee cited a host of reasons for keeping the prime interest rate steady, meanwhile, for a third consecutive month. Among those listed were the revised growth forecasts and  unexpected one percent rise in the Consumer Price Index (CPI), as well as stable home prices during the month of September. In addition, the Bank referred to the qualitative easing programs that were put into place by leading central banks around the world as another reason for the decision.

The rate currently stands at 2.25 percent, having been dropped by the Bank earlier in the year from 2.5 percent.