The interest rate decisions reached by the
Monetary Committee are reported to the public through a press release that is
published with a fixed structure on the Bank of Israel’s website.  The structure of the notices published until
now contained two parts: The first included detailed information on the
background conditions presented to the Monetary Committee when it made its
decision, and the second was one page containing the main factors in the
decision.  Two weeks following the decision,
minutes of the Monetary Committee discussion held to reach the decision are
published.  As the Bank of Israel announced on September 20, 2016, the interest rate decisions will now be made 8
times per year.

Beginning with the upcoming interest rate
decision, the structure of the notices will be changed.  The new structure will be shorter, and will
present an economic situation as seen by the Monetary Committee during the
discussion held to reach its decision on the interest rate.  The beginning of the notice will present a
few short sentences summarizing the state of the economy, and will be followed
by a broader review of the economy.  The
verbal details of the changes in the economic variables since the last decision
(“background conditions”) will be replaced by a separate file that will be
published together with the notice, which will contain graphs and tables that
will include the main data presented to the Monetary Committee by the various
departments in the Bank during the discussion in the broad forum prior to the
decision.  This structure is consistent
with the lower frequency of interest rate decisions, and gives greater weight
to analysis of the fundamental trends.

The summary of the Committee’s discussions
that is published two weeks after the decision will include only a report on
the discussion held by the Committee in the narrow forum in order to reach the
decision.

Bank of Israel Governor Dr. Karnit Flug
said, “We are constantly examining how to improve the communication of monetary
policy to the public and how to make it clearer and more transparent.  As part of this effort, we began holding
quarterly press briefings two years ago regarding monetary policy.  The change in the structure of the notice is
another step intended to help the public better understand the Monetary
Committee’s considerations in making its decisions.”​