The Bank of Israel maintained its interest rate at 0.25% and said it aims to make the monetary policy more accommodative as inflation remains low.

The central bank said annual consumer inflation in November stood at 0.3%, lower than expected, and is projected to stay low in the coming months. Meanwhile, the shekel appreciated by 8.3% in nominal effective exchange rate terms during 2019, continuing to hinder inflation returning to the target range, the Bank of Israel said.

The Israeli economy grew at a solid pace in the fourth quarter of 2019, and while the global economic slowdown continues, risks of significant deterioration have reduced, the central bank added.