The Bank of Israel is in no rush to raise interest rates as inflation remains under control, and will not pre-announce how much foreign currency it might buy to curb shekel appreciation, Governor Amir Yaron said Tuesday.
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On Monday, the bank held its benchmark interest rate at 0.1% for a 13th meeting, citing expectations inflation will ease in the coming year even as the economy rebounds from the pandemic.
Inflation dipped to 2.3% in October from September's eight-year high of 2.5% despite bottlenecks and supply chain difficulties that are affecting Israel like other countries.
"We still have a very accommodative monetary policy," Yaron said in an interview, adding that the central bank had "more degrees of freedom" to maintain that stance as annual inflation is expected to stay within its 1-3% target range.
