Bank of Israel maintains interest rates amid geopolitical concerns, inflation
Date
8/29/2024 8:41:34 AM
(MENAFN) On Wednesday, the bank of Israel decided to keep its interest rates steady at 4.50 percent for the fifth consecutive meeting. This decision reflects the central bank's response to ongoing geopolitical uncertainties and rising domestic inflation. The bank expressed concerns about the heightened economic risks associated with the continued conflict in Gaza, which has intensified since last October. In its statement, the Bank of Israel emphasized its commitment to stabilizing the markets and reducing uncertainty while also focusing on maintaining price stability and supporting economic activity amidst the ongoing war.
Additionally, a spokesperson for the Israeli Finance Minister announced at the end of June that a grace period had been extended to allow continued cooperation between the Israeli banking system and Palestinian banks in the West Bank. This extension, which was due to expire at the end of June, permits Israeli banks to process payments in Israeli shekels for services and salaries related to the Palestinian Authority. The extension is crucial to prevent a significant blow to the Palestinian economy, ensuring that financial operations and payments can proceed without disruption.
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