JERUSALEM - Israel’s central bank is expected to hold the line on short-term interest rates this week for a fourth straight decision amid a strengthening shekel that has helped to contain inflation while the economy sped ahead in the first quarter.
After making a surprise increase from 0.1% on Nov. 26, the central bank has left the key rate unchanged at its subsequent policy meetings in January, February and April. The strong shekel, which has also gained versus the dollar and euro, helped to moderate Israel’s inflation rate to 1.3% in April from an expected 1.5% and 1.4% in March. Israel has an official inflation target of 1%-3%.
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