Bank of Israel lifts benchmark rate 0.25 point

The increase is aiming to keep inflation within the target range of 1% to 3% annually. BOL: expectations around the upper limit of the target inflation range
 
The Bank of Israel surprised much of the market last week with a quarter-point increase in its benchmark interest rate, aiming to keep inflation within the target range of 1% to 3% annually. The move brought the central bank's benchmark rate to 1.75%.
 
The central bank noted in its accompanying statement that its inflation forecasts, estimates of private forecasters, and expectations derived from the capital markets for one year ahead "are around the upper limit of the target inflationrange”.