Sunday, February 22, the monetary Commission under the leadership of the head of the Central Bank of Karnit Flug decided to leave the interest rate for March unchanged.
The discount rate next month will be at the level of 0.1%.
Note that in mid-February, one of the largest investment banks City Bank has published the forecast according to which in the next three months the Bank of Israel will decide on the reduction of the interbank interest rate to a negative rate to -0.1 per cent. However, this prediction did not come true.
According to the Central Bank, in January the consumer price index dropped 0.5%, which is 0.1% below projections. Last month it was registered a seasonal decline in the prices of clothing and footwear (by 5.7%) and housing (0.5 percent). There was also a marked reduction in expenditure on transport and communication (0.7 per cent).
The last time the discount rate was lowered in February 2015 at 0.15%. Thus, for more than a year the Bank of Israel keeps the interest rate at the same level.