Jerusalem, Israel – Israeli Finance Minister Bezalel Smotrich promised on Tuesday to keep the central bank independent, in reaction to the remarks by the foreign minister Eli Cohen who had objected to its recent rate hikes.
“The rate hike does in fact make it harder for many households but the independence of the Bank of Israel, as Israel’s monetary policy maker, is vital to a strong and innovative economy and as finance minister, I will insist on safeguarding it against populist comments,” Smotrich Tweeted.
On Monday, Cohen slammed the central bank for raising its benchmark interest rate again at a time when inflation was moderating. He also called for halting fufther increases.
Israel’s inflation rate hit a 14-year high of 5.4 percent in January, prompting the central bank to raise interest rates by half a percentage point at a policy meeting on Monday to 4.25 percent, its eighth hike since last April.