JERUSALEM, April 3 (Reuters) - The Bank of Israel on
Monday raised its benchmark interest rate by another
quarter of a percentage point, the ninth straight meeting it has
increased rates amid a battle against inflation that remains
above 5%.
The central bank lifted its key rate to 4.5% - its highest
level since 2007 - from 4.25%. Last 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 stood
at 5.2% in February, slightly lower than a 14-year high of 5.4%
in January but well above the government's 1%-3% annual target
range.
At the same time, Israel's economy grew a faster than
expected 6.4% in 2022, although growth is expected to slow to
below 3% this year amid the steep rate hikes.
A Reuters poll had found that 11 of 12 economists had
expected a 25 basis points move, while one other foresaw a 50
basis point hike.
(Reporting by Maytaal Angel)
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