Remarks by the Governor of the Bank of Israel

The interest rate for October 2015

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This document presents the forecast of macroeconomic developments compiled by the Bank of Israel Research Department in September 2015. The forecast was presented to the Monetary Committee on September 21, 2015, during its meeting prior to the decision on the Bank of Israel interest rate for October 2015. According to the staff forecast, gross domestic product (GDP) is projected to increase by 2.6 percent in 2015, and by 3.3 percent in 2016. The rate of inflation over the next year (ending in the third quarter of 2016) is expected to be 0.6 percent. The Bank of Israel interest rate is expected to remain at its current level of 0.1 percent until the first quarter of 2016, and to increase gradually from the second quarter of 2016.