Israel made the most significant rate hike in 20 years to rein in the highest level of inflation since 2008.

The Bank of Israel made the most significant rate hike in 20 years. 

The bank increased the policy rate from 1.25% to 2%. The rate hike exceeded all Bloomberg economists’ forecasts. 

Thus, the Central Bank continued the interest rate increase cycle in the fourth month. This was the most extended tightening cycle since 2008. 

Economists said that inflation, stronger-than-expected growth data and strong job market support further rate hikes. 

Since July, the Israeli currency shekel has become the second-best performing currency against the dollar. 

Inflation in the country has been above the government’s target of 1-3 percent since January. Inflation hit 5.2 percent last month, the highest level since 2008.