JERUSALEM, Feb 20 (Reuters) - The Bank of Israel on
Monday raised its benchmark interest rate by another
half a percentage point, the eighth straight meeting it has
increased rates to try to rein in inflation that remains above
5%.
The central bank lifted its key rate to 4.25% - its highest
level since late 2008 - from 3.75%. In April, policymakers began
raising the rate from 0.1% and have been aggressive during a
front-loading process, but most analysts believe the tightening
cycle is close to over.
Despite the rate hikes, Israel's annual inflation rate rose
to a 14-year high of 5.4% in January from 5.3% in December -
well above the government's 1%-3% annual target range and
fuelling public anger at spiking living costs.
At the same time, Israel's economy grew a faster than
expected 6.5% in 2022, although growth is expected to slow to
below 3% this year amid the steep rate hikes.
A Reuters poll had found that nine of 15 economists had
expected a 25 basis points move, while six others foresaw a 50
basis point hike.
(Reporting by Steven Scheer; Editing by Hugh Lawson)
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
Twitter: @StevenMScheer))
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