The Bank of Israel left its benchmark interest rate at 0.1% for a seventh straight meeting on Monday, following stronger than expected economic data that boosted optimism about a quick rebound this year due to COVID-19 vaccines.
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All 15 economists polled by Reuters had said they expected the monetary policy committee to keep rates steady after doing so ever since cutting them from 0.25% early last April.
Central bank officials have expressed reluctance to lower the key rate from an all-time low to zero or into negative territory despite a strong shekel and three lockdowns. Instead, they prefer to use other measures to stimulate the economy such as buying currency and government and corporate bonds.
Israel's economy grew an estimated 2.4% in 2020, well below the Bank of Israel's 3.7% forecast.
