Quotes from Barclays Capital:- The Bank of Israel kept its 0.25% base rate on hold today, as expected. It emphasized that ILS depreciation will increase exports and push inflation higher. Rising housing prices was another factor.- The BoI is surprisingly optimistic on growth, raising its 2014-15 forecasts. The BoI has reconfigured its inflation forecasts. In the near term, it has lowered projected inflation due to declines in global oil prices and has raised its medium-term forecasts due to ILS weakness. – The BoI has moved further away from monetary policy loosening. The Research Department reconfirmed its forecasts that the BoI will remain on hold in 2015 and new forecasts for 2016 indicate a gradual increase in rates to about 1.0% by the end of the year. We agree that the next move of the BoI will likely be an increase in rates at the beginning of 2016.
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