The Bank of Israel raised its benchmark interest rate by a bigger-than-expected 0.4 percentage points continuing its aggressive battle against rapidly rising inflation amid strong economic growth.
The central bank lifted its key rate to 0.75% from 0.35%. In April, policymakers had raised the rate from 0.1% an all-time low where it had stayed for the prior 15 decisions since a 0.15 point reduction at the outset of the COVID-19 pandemic.
The Bank added that the pace of rate hikes will be based in accordance with activity data and the development of inflation.