The Monetary Committee of the Bank of Israel decided that Israel's interest rate will remain unchanged at 1% in November.
The announcement was in line with market expectations. The decision to keep the interest rate for November 2013 unchanged at 1% is consistent with the Bank of Israel's monetary policy, which is intended to entrench the inflation rate within the price stability target of 1–3% a year over the next twelve months, and to support growth while maintaining financial stability.
The path of the interest rate in the future depends on developments in the inflation environment, growth in Israel and in the global economy, the monetary policies of major central banks, and developments in the exchange rate of the shekel.
A month before, the central bank's monetary committee cut interest rates by 0.25 percentage points to 1%.