[2] We took last week’s decision, and expect to raise interest rates further, because inflation remains far too high and is likely to stay above our target for an extended period. The new staff projections foresee inflation to average 8.1 per cent in 2022, 5.5 per cent in 2023 and 2.3 per cent in 2024.
These scenarios do not depend on the Bank of Israel’s policies, but yet we have to be prepared for the possible impact on the economy, and we hope that in the end, the negative scenarios will not unfold. What should we do, then, in the future? We must maintain the fiscal framework.