JERUSALEM, Nov. 26 (Xinhua) -- Israel's central bank decided on Monday to raise the base interest rate from 0.1 to 0.25 percent after more than three years without a change.

It is also the first time that Israel's base rate will be raised in seven years and a half.

Signs of an interest rate hike have grown in recent weeks, as the U.S. dollar strengthened against the Israeli new shekel, and the Consumer Price Index (CPI) rose 0.3 percent in October.

"After a sustained rise in inflation since the beginning of 2018, it is stabilizing slightly above the lower limit of the government target, and is expected to remain in this area in the coming months," the central bank's Monetary Committee said in a statement.

The committee also estimates a gradual and cautious path for raising the interest rate in the future.