Research Department Staff Forecast, June 2014
Research Department Staff Forecast, June 2014.
This document presents the forecast of macroeconomic developments compiled by the Bank of Israel Research Department in June 2014. The forecast was presented to the Monetary Committee on June 22, 2014, during its meeting prior to the decision on the Bank of Israel interest rate for July 2014. According to the staff forecast, gross domestic product (GDP) is projected to increase by 2.9 percent in 2014, and by 3.0 percent in 2015. The rate of inflation over the next year (ending in the second quarter of 2015) is expected to be 1.6 percent. The Bank of Israel interest rate is expected to be 0.75 percent at the end of 2014, and to start rising during 2015, such that the interest rate is expected to reach 1 percent one year from now.