According to the Bank of Israel Law, the objectives of monetary policy are first of all to maintain price stability over time, and subject to that, to support the government’s economic policy, and particularly growth, employment and reducing social gaps, and also to support financial stability.
The Bank of Israel uses the policy tools available to it for this purpose: the Bank of Israel interest rate, intervening in the foreign exchange market according to circumstances, and prudential tools in the form of various restrictions in the mortgage market.