Bank of Israel Holds Rates Amid Rising Prices

The Bank of Israel has decided to keep its key interest rate unchanged at 4.75%, despite increasing inflation and low economic growth rates. This announcement comes in the context of ongoing economic challenges facing the country, including both domestic and global market fluctuations.

The chief economist of the bank noted that despite the slowdown in economic growth, inflation remains high, which demands careful monitoring of financial policy. According to data released this week, prices in Israel rose by 1.5% in the last month, putting additional pressure on consumers and overall economic indicators.

Analysts point out that the decision to maintain the rate may indicate a need for balance between stimulating the economy and controlling inflation. Future forecasts suggest that the Bank of Israel will closely observe the economic situation to make informed decisions amid uncertainty.

Investors and market participants expect the central bank to provide additional guidance on its economic policy in the coming months. Amid volatility in global markets, this strategy will define the next steps for policymakers to maintain the resilience of Israel's economic system.

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