Israel holds rate but ends business lending program
Israel s central bank left its key interest rate unchanged, as expected, and while it reiterated it will continue to conduct a very accommodative monetary policy for a prolonged time it also began unwinding some of its extraordinary easy monetary policy by wrapping up a lending program.
Bank of Israel (BOI) kept its interest rate unchanged at 0.10 percent, unchanged since April last year when it was cut for the first time in five years in response to the hit to economic activity from the COVID-19 pandemic.
The rapid recovery of economic activity continues, BOI said, adding there were not any material restrictions on economic activity at this point.
BoI keeps rate unchanged, cuts 2021 growth forecast
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BoI keeps rate unchanged, ups inflation forecast
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Bank of Israel slams planned government grants
The Bank of Israel says government resources should focus on stimulating growth rather than universal grants.
The Bank of Israel has been critical of the new financial stimulus plan presented yesterday by Prime Minister Benjamin Netanyahu and Minister of Finance Israel Katz.
Despite warnings from the Attorney General Avichai Mandelblit not to engage in election economics, Netanyahu and Katz plan giving all Israelis from the bottom to seventh decile NIS 750 as well as grants to small and medium sized businesses, and incentives for the unemployed to return to work. The principles of the economic plan were handed to the Bank of Israel a short while before it was published, the Bank of Israel said tersely and data is required in order to examine its necessity in light of the fact that the economy is set to soon come out of lockdown.