The reasons for the decision, according to the bank, is the price index for March 2015 increased by 0.3%, led by fuel prices and by the housing component
The Bank of Israel Monetary Committee headed by Governor Dr. Karnit Flug, has kept the benchmark interest rate for May unchanged at a historic-low of 0.1%.
In citing the reasons for its decision, the Bank of Israel said, "The consumer price index (CPI) for March 2015 increased by 0.3%, led by fuel prices and by the housing component. The rate of inflation as measured over the past 12 months was negative 1%. Short-term inflation expectations from various sources are near the lower bound of the inflation target range, or slightly below it. Longer-term expectations remained stable around the midpoint of the target range (1-3% annually)."
The Bank of Israel added, "Indicators of economic activity for the first quarter point to the economy continuing to grow at the moderate rate of the past two years. Companies Survey data support this assessment. The Composite State of the Economy Index increased by 0.4% in March, and tax revenues increased. Net of extraordinary effects, goods exports increased by 3.3% in March, and declined by 0.9% in the first quarter, in dollar terms."