The Monetary Committee of the Bank of Israel, chaired by Governor Amir Yaron, decided to raise the basic interest rate by another quarter of a percentage point to 4.75%, and the prime rate to 6.25%, the central bank announced on Monday.
Starting next week – a delay from Thursday because of the Shavuot holiday – the Bank of Israel's interest rate will be the highest since December 2006, when it stood at a rate of 4.5%.
Following the Bank of Israel's decision, thousands more borrowers of mortgage loans are expected to encounter difficulties in meeting their monthly loan repayments, which have already risen by hundreds, and even thousands, of shekels per month.
(Tzachi Sade)