Bank of Israel keeps benchmark interest rate at 0.1%

JERUSALEM (Reuters) – The Bank of Israel left its benchmark interest rate at 0.1% on Monday, after it lowered the rate last month to help the economy recover from the coronavirus outbreak.

All 12 economists polled by Reuters believed the monetary policy committee would hold the line on rates after a reduction from 0.25% on April 6.

Israel’s economy contracted an annualised 7.1% in the first quarter due to declines in consumer and state spending, exports and investment, while the annual inflation rate fell to -0.6% in April.

(Reporting by Steven Scheer; Editing by Ari Rabinovitch)