Move comes amid fastest inflation since 2008 and strong economic growth

Israel's central bank on Monday increased the interest rate by the most in 20 years amid rapidly rising inflation and a strong domestic economy.

The monetary committee headed by Prof. Amir Yaron, governor of the Bank of Israel, raised its benchmark from 1.25 percent to 2 percent -- an increase of 0.75 percent.

It is the most aggressive rate hike since June 2002 and marks the fourth rate hike since April, which began at a historical low of 0.1 percent.... Read More: i24