The Bank of Israel kept short-term borrowing rates unchanged for a fourth straight decision on Monday as policymakers remained focused on maintaining financial stability during Israel's war against Hamas.
The central bank held its benchmark rate at 4.75% - its highest level since late 2006. It had raised rates 10 straight times in an aggressive tightening cycle that has taken the rate from 0.1% last April before pausing in July and again in August and October.
All 14 economists polled by Reuters had forecast no rate change.
"The war is having significant economic consequences, both on real economic activity and on the financial markets," the central bank said in a statement following its decision.
"There is great amount of uncertainty with regard to the expected severity and duration of the war," it said.
(Reuters)