FILE PHOTO-The Bank of Israel building is seen in Jerusalem June 16, 2020.
Israel's annual inflation rate dropped to 3.3% in July from 4.2% in June, its lowest rate since March 2022 but above a government target range of 1-3%.
"The central bank will leave the door open for further rate hikes and maintain its relatively hawkish stance, given that the shekel remains weak and exposed to domestic political developments," said Goldman Sachs economist Tadas Gedminas.
The Bank of Israel left its key rate unchanged in July after an aggressive rate hike cycle that took the rate from 0.1%.
Minutes of the meeting showed policymakers were concerned the shekel could keep inflation from moving back to its target and that further rate increases were possible.
Persons:
Ronen, Zalina Alborova, Benjamin Netanyahu's, Goldman Sachs, Tadas Gedminas, Morgan Stanley's Georgi Deyanov, Bhumika Gupta, Steven Scheer, Frances Kerry
Organizations:
Bank of, REUTERS, Reuters, Bank of Israel, Barclays, Citi, The Bank of Israel, Thomson
Locations:
Bank of Israel, Jerusalem, Israel