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BoI offers no new guidance, 2022 rate hike still in play

The Bank of Israel (BoI) left its policy rate on hold at 0.10% as expected at its meeting today, confirmed that it will end its bond purchase programme next month and emphasised that it will continue to intervene in the FX market for as long as necessary. The strengthening of the shekel will bear down on inflation, but we think that an interest rate hike next year remains in play.

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