jerusalem feb 20 reuters  the bank of israel is expected to keep shortterm interest rates unchanged this week its 15th such decision in a row although analysts believe rapid economic growth and rising inflation will push rates higher in the coming months all 16 economists polled by reuters forecast that the central banks monetary policy committee mpc will keep the benchmark rate ilinreci at an alltime low of 01 when the decision is announced on monday at 4 pm 1400 gmt in keeping rates steady last month bank of israel governor amir yaron said israel did not have an inflation problem like other countries and that allows for patience in examining the developments and in conducting monetary policy however since the jan 3 decision data showed that the annual inflation rate rose to 31 in january  above the governments 13 target range and the first time it topped 3 since 2011 meanwhile israels jobless rate has returned to precovid19 levels and the bank estimates the economy will grow 55 this year gdp growth in 2021 was 81 in 2021 above the central banks 65 forecast read more the strong gdp print along with signs that labour markets keep improving should further reduce lingering doubts about the robustness of the economy said citi economist michel nies we expect the bank of israel to start communicating in the next meeting that a gradual normalisation of very low rates rather than a policy tightening will be in the cards in the second quarter of this year the banks forecast is for no more than a 15 basis point rate increase this year but analysts now expect hikes to start sooner and reach as much as 075 this year  with increases likely to begin as early as the april meeting after an expected move by the us federal reserve in march risks are rising for the authorities to begin normalising rates as the economy gathers steam and inflation continues to surprise on the upside said barclays economist raisa muhtar still economists said the next two meetings will likely be used by the monetary policy committee to prepare the markets with may the more likely decision for a rate hike first they have to say something about it said alex zabezhinsky chief economist at the meitav dash brokerage if they are going to change policy they will emphasise that the change will be gradual