Mati Barnhart, knitted news21.11.22 16:08 27 in Hashvan Tishpag
Photo: Yonatan Zindel / Flash 90
For the sixth time in a row: the governor of the Bank of Israel decided to raise the interest rate by half a percentage to 3.25%, a record of more than a decade.
The prime interest rate will jump as a result of this at a rate of 4.75%, and will severely affect mortgages and loans.
As mentioned, the last time the interest rate was at such a high rate was in May 2011.
The Bank of Israel said that “solid economic activity continues in the Israeli economy, the labor market is still characterized as tight and the GDP level continues to be the highest of the long-term mega. However, the tightening monetary policy and the moderation in activity in the world are expected to lead to a certain slowdown in economic activity in Israel as well and a number of indicators point to signs of the beginning of a process This”.
The bank also claimed that “economic activity in the world is moderating and the pace of recession is rising, especially in Europe. This is against the background of the ongoing war in Ukraine and the energy crisis in Europe, the high inflation and humanitarian tightening and the distortion in China. On the other hand, the easing of supply chains continues, while transport prices decrease.
As I recall, last October the Bank of Israel decided to raise the interest rate by 0.75% to 2.75%.
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