Israel cenbank to hold rates, prepare markets for tightening

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An Israeli flag flutters outside the Bank of Israel building in Jerusalem August 7, 2013.. REUTERS/Ronen Zvulun/File Photo

  • Rate decision due at 1300 GMT on Thursday
  • Inflation rate at 2.2% in August, highest since July 2013
  • Economy grew annual 16.6% in Q2 from Q1 after lockdown
  • <a href=”reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/cb-polls?”></a>

JERUSALEM, Oct 6 (Reuters) – The Bank of Israel is expected to leave short-term interest rates unchanged this week for its 12th straight policy meeting, although the central bank may start preparing the markets for an eventual end to its very accommodative policy amid rapidly expanding growth and quickening inflation.

All 15 economists polled by Reuters believe the monetary policy committee (MPC) will keep the benchmark rate (ILINR=ECI) at an all-time low of 0.1% when the decision is announced on Thursday at 4 p.m. (1300 GMT).

While a rate increase is still viewed as at least a year away, analysts project…

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