Israel growth was a little disappointing in latest quarters, specifically with the exports being weak. The Bank of Israel is likely with a dovish bias, but does not want to move into negative rates or implement other unorthodox policies.

Hence, the central bank is looking to weaken the currency and welcomes support by tightening of global monetary conditions. Israel rate hikes are still a long way off.

"We expect Israel to keep its base rate unchanged at 0.10% notwithstanding the Fed rate hike and subsequent ILS depreciation. Inflation is still well below the target at -0.9% y/y in November", says Barclays in a research note.