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As had been widely expected in analytical circles, Bank of Israel governor Stanley Fischer has left Israeli interest rates unchanged at 1.25% for February.

The central bank explained that it aspires to gradually push back inflation into the government's target range, which is 1% to 3%, while continuing to contribute to economic activity.

In theory, the Bank of Israel's sole mandate is to keep inflation in check. But Fischer has stated that the health of the economy is also a consideration when setting interest rates. In its latest announcement, again the central bank says that when making monetary decisions, the inflation environment counts - and so does the state of growth in Israel and the global economy.

Another consideration is the pace at which other central banks are raising their rates. At present, interest rates around the world are very low, and they're likely to stay that way for months to come, the Bank of Israel says. In fact it was one of the first to raise its rates in the aftermath of the global financial crisis.