Israel announced the maximum rate hike in 20 years

The Israeli Central Bank announced on the 22nd that the benchmark interest rate was raised by 0.75 percentage points to 2 % to curb the continuous increase in inflation.This is the largest single -rate rate hike in Israel in 20 years, and the benchmark interest rate has reached the highest level in the past ten years.

The interest rate hike is the fourth rate hike of the Israeli Central Bank this year.Earlier, the Israeli central bank has maintained interest rates at a lower level. In April this year, interest rates raised interest rates from 0.1 % to 0.35 %, raised in May to 0.75 %, and in July to 1.25 %.

According to a statement issued by the Israeli Central Bank, the annualized inflation rate of Israel in July this year rose to 5.2 %, the highest since October 2008.

The statement said that multiple factors led to high Israeli inflation.In July this year, the consumer price index showed that many costs including food, clothing, transportation, etc. have increased.At the same time, Israel's economic activities are still strong and the labor market is tight.However, recently the Israeli supply chain dilemma has been relieved, the prices of commodities such as oil have declined, and the appreciation of the new local currency Shekl will help relieve inflation.

Source: Xinhua News Agency

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