The Bank of Israel left interest rates unchanged for the seventh straight meeting on Monday, saying inflation remains high but that military conflicts are keeping economic growth weak.

The decision to stand pat was expected, with inflation remaining above target amid continuing geopolitical uncertainty posed by an expanding war.

Israel left interest rates unchanged as it weighs a war-related economic slowdown and quickening inflation. The Bank of Israel held its base rate at 4.5% on Monday, in line with the estimates of all economists surveyed by Bloomberg.

Inflation remains above target and is expected to increase over the coming months as supply constraints persist.