Bank of Israel raises interest rate by 0.75% to curb inflation

By Zain Khalil

JERUSALEM (AA) – The Bank of Israel on Monday raised the interest rate by 0.75% to reach 2%, the highest increase in 20 years, as part of efforts to curb high inflation rates.

"The Monetary Committee decided to raise the interest rate by 0.75 percentage points, to settle at 2%," the bank said in a statement.

The bank said inflation in Israel has exceeded the upper target, and reached 5.2% for the past twelve months.

This is the fourth time the Bank of Israel raises the interest rate since April, and the highest since July 2002.

*Writing by Mahmoud Barakat