(Bloomberg) -- The Bank of Israel is determined not to let inflation “reach the levels seen in Europe and the US,” Governor Amir Yaron said on Monday.

“Our primary role at the Bank of Israel is price stability,” he said during a Tel Aviv conference. “When you don’t have price stability, the whole of the economy suffers.”

The Bank of Israel has raised its base rate by the most in over a decade, and toughened its guidance, as it looks to combat inflation, which has remained stubbornly above the government’s 1% to 3% target since the start of the year.

Nevertheless, Israel’s inflation rate, which reached an annual 4.1% in May, remains significantly below Europe and the US, where it is swiftly approaching double digits.

The bank intends to bring inflation back within target in 2023, he said, adding that the bank was moving quickly in order “to prevent greater pain in the future.”

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