Bank of Israel Raises Rates for First Time in Seven Years

Nadine Baudot-Trajtenberg 

 In a surprise move, the Bank of Israel raised its benchmark interest rate to 0.25% from 0.1% this past week.

The central bank said it was raising the rate in response to the gradual increase in inflation to inside the government's target of between 1% and 3% annually.

Acting central bank chief Nadine Baudot-Trajtenberg was the driver behind the hike even though her caretaker position will end on December 24 when Amir Yaron assumes the duties.

In a video statement, Baudot-Trajtenberg defended the decision to act during an interregnum between two governors.

“The committee was very aware that we are in a transition period, a period of changing governors ... but like in all previous decisions, the committee members believed decisions must be made based solely on data and economic analyses,” she said.

Price inflation in Israel came in on an annual basis of 1.2% in October.

Now that's what I call a price inflation fighter.

-RW 

(Source: Haaretz)