Monetary Policy

The Bank of Israel's main function is to protect the value of the local currency - in other words, to maintain price stability. Maintaining the value of money is important for economic stability and strength, and for creating the conditions necessary for continued growth of output and employment.

The Bank of Israel conducts interest rate policy that is intended to achieve the inflation rate target set by the government. To that end, the Bank uses various monetary tools, including monetary loans to banking corporations, monetary deposits of banking corporations with the Bank of Israel, a credit window and deposit window, MAKAM issues, open market operations, and repos.