The central bank of Israel left its benchmark interest rate steady at 0.25 percent on July 8th, in line with market expectations after inflation rate jumped to 1.5 percent, the highest since December of 2013 and above the lower bound of the 1-3% target. Policymakers forecast annual inflation rate to decline in the coming months, but slightly above the lower bound of the target range. Over the next year, inflation is projected to be 1.4 percent. The central bank added that the shekel has been relatively stable against the dollar and the euro since the last meeting. Interest Rate in Israel averaged 5.49 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 0.50 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 0.75 in 12 months time. In the long-term, the Israel Interest Rate is projected to trend around 1.25 percent in 2020, according to our econometric models.