Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

All six Israel MPC members voted to keep rates unchanged-minutes

Economy Sep 05, 2021 09:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The Bank of Israel building is seen in Jerusalem June 16, 2020. REUTERS/Ronen Zvulun/File Photo 2/2

By Steven Scheer

JERUSALEM (Reuters) - All six rate setters at the Bank of Israel voted to keep the benchmark interest rate at 0.1% on Aug. 23, though one member believed it may be time to start tightening policy, minutes of the discussions showed on Sunday.

For the second straight meeting, the monetary policy committee voted 6-0 to leave rates unchanged.

The economy rebounded in the second quarter after most COVID-related restrictions were lifted, while inflation moved near a 2% rate.

One member, the minutes said, was of the opinion that the strong economic data and the increase in the inflation environment "could have made it possible to begin gradually reducing the extent of monetary policy accommodation".

"However in view of the renewed increase in morbidity it is best to be very cautious and at this time to retain the current policy," the minutes said, citing the view of the policymaker.

Gross domestic product (GDP) grew an annualised 15.4% in the April-June period from the prior three months, while the inflation rate reached 1.9% in July from below zero earlier in 2021.

Yet, COVID-19 infections from the Delta variant have spiked in recent weeks, despite a rapid vaccination rollout in which many adults have already received a third shot although with the number of serious cases fairly low, officials are reluctant to impose a fourth lockdown.

"The Israeli economy’s process of recovery from the crisis continues. However, there are still challenges to economic activity, in view of the increased health risks in Israel and abroad," the minutes said. "Therefore, the (MPC) will continue to conduct very accommodative monetary policy for a prolonged time, using a range of tools as necessary."

Policymakers noted "there are no signs of an outbreak of inflation" even though prices of non-tradable items continue to rise, while the rate of increase in prices of tradable goods was stable.

At the same time, MPC members noted that economic activity returned to its long term trend in most industries but tourism, hospitality and culture continued to struggle.

"The committee will formulate its policy so that it will continue to provide macroeconomic support for the process of exiting the economic crisis, and will ensure that the credit market continues to function," the minutes showed.

 

 

All six Israel MPC members voted to keep rates unchanged-minutes
 

Related Articles

Yen weakens past key level, sterling pares gains
Yen weakens past key level, sterling pares gains By Reuters - Oct 03, 2022 1

By Rae Wee SINGAPORE (Reuters) - The yen breached the key level of 145 a dollar on Monday, for the first time in more than a week since Japan's intervention to prop up the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email