Bank of Israel Holds Rates Amidst Inflation Surge

Israel’s central bank has decided to maintain interest rates at 4.5%, marking the eleventh consecutive hold, in response to rising inflation reaching 3.6% and intensifying military operations in Gaza. This decision comes despite Q1 economic growth exceeding expectations, reaching 3.4%. The Bank of Israel is currently awaiting signals that inflation will decelerate before considering cuts, citing factors like market uncertainty and high inflation rates.