JERUSALEM, May 23 (Xinhua) -- Israel's central bank on Monday raised the benchmark interest rate from 0.35 to 0.75 percent, in the second rate hike in two months, to curb the inflation.

       Last month, the rate was raised for the first time since 2018, from 0.1 to 0.35 percent.

       The bank explained the decision with the soaring inflation, reaching 4 percent over the past 12 months, above the ceiling of the government target ranging from 1 to 3 percent.

       Gad Lior, senior analyst for Yedioth Ahronoth daily newspaper, told Xinhua that the bank's decision is expected to moderate the rising demand for apartments and cool down the real estate boom.

       He added, however, that the interest rate rise is expected to strengthen the Israeli shekel, undermining Israeli exporters who receive payments in foreign currencies.

       Ron Tomer, president of the Manufacturers Association of Israel, warned that the hike in the interest rate could suffocate the Israeli economy, leading to a decline in investment and economic growth.