Posted on 08/22/22
| News Source: i24
Move comes amid fastest inflation since 2008 and strong economic growth
Israel's central bank on Monday increased the interest rate by the most in 20 years amid rapidly rising inflation and a strong domestic economy.
The monetary committee headed by Prof. Amir Yaron, governor of the Bank of Israel, raised its benchmark from 1.25 percent to 2 percent -- an increase of 0.75 percent.
It is the most aggressive rate hike since June 2002 and marks the fourth rate hike since April, which began at a historical low of 0.1 percent.
The move comes as inflation rises at the fastest rate since 2008 and as Israel's economy strengthens to pre-pandemic levels.
Israel's GDP grew at an annualized 6.8 percent in the second quarter compared to the previous quarter, according to the Central Bureau of Statistics.