The central bank of Israel left its key interest rate steady at 0.1 percent on May 25th 2020, in line with market expectations and following a 15bps cut in the previous meeting. Policymakers said the coronavirus crisis has led to an unprecedented contraction in the scope of economic activity and to a steep increase in the number of jobseekers. Under the assumption there won’t be an additional wave of infections and a renewed increase in the severity of the limitations, after a marked contraction in 2020, GDP growth will recover rapidly in 2021, but the unemployment rate at the end of 2021 will be higher than what it was just prior to the crisis. The central bank added that will expand the use of the existing tools, including the interest rate, and will operate additional ones if the crisis is lengthening and it is necessary to achieve the monetary policy goals and to moderate the negative economic impact created as a result of the crisis.
Interest Rate in Israel averaged 5.32 percent from 1996 until 2020, reaching an all time high of 17 percent in June of 1996 and a record low of 0.10 percent in March of 2015. This page provides - Israel Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Israel Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2020.
Interest Rate in Israel is expected to be 0.10 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 0.10 in 12 months time. In the long-term, the Israel Interest Rate is projected to trend around 0.50 percent in 2021 and 0.75 percent in 2022, according to our econometric models.