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Bloomberg
The Bank of Israel left its benchmark interest rate near zero, as growth slowed, home prices rose and exporters braced for the impact of the U.K.’s vote to leave the European Union — Israel’s largest trading partner.
The decision to hold the rate at 0.1 percent was forecast by all 17 economists in a Bloomberg survey.
The central bank said last month it was closely monitoring developments surrounding the Brexit vote, amid fears it could crimp demand for exports that declined 12.9 percent in the first quarter, excluding diamonds and startups.
The bank last changed the rate in February 2015.
“Uncertainty regarding the ramifications of the Brexit process is expected to remain high,†the Bank of Israel said in an e-mailed statement on Monday.
The bank also noted the International Monetary Fund’s decision to lower its 2016 global growth forecast to 3.1 percent from 3.2 percent last week.
Israel’s economy grew 1.7 percent in the first quarter, down from 3.5 percent in the previous period, led by the drop in exports that account for about a third of output.