- Prior was 0.75%
- The benchmark rate hiked to 1.25% from 0.75%
- Economy is experiencing high growth and a tight labor market
- Inflation is 'well above' the upper bound of the target range
- Notes that expectations for three years out have converged to midpoint of the range
- Forecasts 5% growth in 2022 vs 5.5% prior. Sees 3.5% next year
- Expects inflation at 2.4% in 2023
- Forecasts benchmark rate at 2.75% in one year vs 1.50% previously
Some economists were looking for just 25 basis points. Israel's inflation is expected at 4.5% this year, which is high but below most developed economies.