Monetary policy The Bank of Israel’s policy acts to achieve the Bank of Israel’s targets as set out in the law. The main target is achieving price stability, meaning meeting the inflation target, and subject to that, support for the other economic targets, chiefly growth and employment, and support for financial stability.
In recent months, the inflation rate has been below the target, and in the past 12 months, prices have declined by 0.4 percent, mainly due to a decline in fuel and commodities prices. In contrast, one-year forward inflation expectations are at the lower bound of the target range – 1.0 percent.