Israel raises its key rate for the first time in seven years

RT

Israeli currency "shekel"

The Central Bank of Israel has announced that the interest rate of the economic facilities will increase from December to December from a maximum of 0.1% to 0.25%.

Bank sources pointed out that the central bank had not changed the interest rate since March 2015 and that the last time the rate was raised more than seven years ago.

According to sources, interest rates are expected to rise again in 2019.

Economic badysts believe that conditions are in place to raise interest rates because of the growth rate which remains around 3%, as well as the weakness of the dollar against the shekel.

The official interest rate for home loans and other loans will increase from 1.6 to 1.75%, as a result of the rise in the basic interest rate.

In addition, economists believe that raising the interest rate will not affect the public debt, but that this measure could lead to a further decline in prices on the real estate market and increase profits of banks, at the expense of citizens.

Source: Israel Broadcasting Corporation