"We are watching the market," says Bank of Israel's spokesman in response to shekel devaluation that brought the dollar to NIS 5 in local trading today. The spokesman refused to answer questions regarding another interest rate update soon.

On Monday the central bank raised monetary interest by 1% to 5.6% -- just 0.2% below the key lending rate prior to December's package deal.

Despite the cost of the lesson, the market is forming the opinion that Bank of Israel should have made a more serious interest rate hike which would have prevented the shekel's 2% freefall in the past two days.

Bank of Israel could prefer to wait until the beginning of next month, when the effects of exporters end of month conversions will be evident, before deciding to change interest rates again if at all.