JERUSALEM, May 27 (Reuters) - The Bank of Israel held interest rates steady on Monday for the third straight meeting following the re-emergence of price pressures and a rebound in economic activity.
The central bank kept its benchmark rate at 4.50%. It had reduced the rate by 25 basis points in January after inflation eased and economic growth was hit by Israel's war with Palestinian militant group Hamas, but kept policy steady in February and April.
All 15 analysts polled by Reuters had expected no rates move.
Israel's annual inflation rate rose to 2.8% in April, still within its target range of 1-3%, after reaching 2.5% in February. The economy grew an annualized 14.1% in the first quarter from the prior three months after shrinking in the fourth quarter after the war broke out on Oct. 7. (Reporting by Steven Scheer; Editing by Toby Chopra)
