The Bank of Israel on Monday reduced short-term interest rates for the third time in six months, with inflation remaining under control despite the war with Iran, at a time when the shekel recorded its highest level against the dollar in nearly three decades.
The central bank, as expected, reduced the key interest rate from 4% to 3.75%.
The bank had reduced interest rates in November and January, but then stopped due to the war and fears of rising inflation as a result of supply disruptions, according to Reuters.
The annual inflation rate stabilized at 1.9% in April, within the target range of 1% to 3%.
The United States and Israel launched war on Iran on February 28. The ceasefire reached on April 8 is still holding but fragile.
