The Bank of Israel has kept the interest rate for July unchanged at 3.5%. The Bank of Israel said, “At this stage, the current level of the Bank of Israel interest rate is consistent with bringing the rate of inflation back to within the target range by the end of 2007, assuming that the exchange rate remains around its current level. Against a background of this year’s economic growth and that expected next year, according to econometric models, local prices continue to rise by the rapid rate of more than 3%. However, at this stage, there are no signs of inflationary pressures.”  (Globes)