June 23, 2014 / 1:06 PM / in 4 years

Bank of Israel holds benchmark interest rate at 0.75 percent

JERUSALEM, June 23 (Reuters) - The Bank of Israel left its benchmark interest rate at 0.75 percent for a fourth straight month on Monday, a sign the economy was not weakening enough to warrant further stimulus despite very low inflation.

Ten of 13 economists polled by Reuters had forecast no move, which came after first-quarter economic growth was revised up to an annualised 2.7 percent rate from an initial estimate of 2.1 percent.

Annual inflation held steady at 1.0 percent in May, the bottom of the government’s target of 1-3 percent a year. Bond market yields imply a rate of 1.3 percent in a year’s time.

Bank of Israel Governor Karnit Flug said this month policymakers were dealing with an unclear picture of the economy. (Reporting by Steven Scheer)

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