Israel’s central bank jumped the pack this past week, becoming the first to hike interest rates — raising its key interest rate level to 0.75 percent from 0.5 percent — since the global recession began thawing.
Could the Federal Reserve and other big central banks be next? After all, some blame the Fed for keeping interest rates too low after the 2001 recession and sparking the credit bubble. Not likely, many economists say.
While Israel says it’s worried about inflation, consumer prices in the United States fell 2.1 percent in July from the prior year. That plus the tenuous position of the U.S. economy likely mean the Fed won’t boost rates from their record lows anytime soon.
Israel raised its key interest-rate level to 0.75 percent from 0.5 percent.
Policy Interest Rate
United States Japan United Kingdom Europe 0 to 0.25% 0.1% 0.5% 1%
Source: Thomson Reuters
