The central bank of Israel left its benchmark interest rate steady at 0.25 percent on January 7th 2019, as expected, saying inflation rate is stabilizing above the lower bound of the target range of 1 to 3 percent. In November, annual inflation rate came in at 1.2 percent, the same as in each of the previous three months. Inflation is expected to remain within the lower bound of the target in the next months and in 2019 it is seen at 1.3 percent, before rising to 1.8 percent in 2020. Regarding growth, policymakers expect the economy to expand by 3.4 percent in 2019 and 3.5 percent in 2020. Interest Rate in Israel averaged 5.57 percent from 1996 until 2019, reaching an all time high of 17 percent in June of 1996 and a record low of 0.10 percent in March of 2015.
Interest Rate in Israel is expected to be 0.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Israel to stand at 0.50 in 12 months time. In the long-term, the Israel Interest Rate is projected to trend around 1.00 percent in 2020, according to our econometric models.