Israel's basic money supply rose an annual 12 percent in September, slowing for a ninth consecutive month, after seven interest rate increases in the past year, the Bank of Israel said Monday.

Consumer and corporate cash and checking accounts, or M1, declined 0.2% to a preliminary monthly average of NIS 50.9 billion, according to the central bank.

Annual inflation slowed to 1.3% in September from 2.2% the previous month, the Central Bureau of Statistics said Sunday. Six out of nine economists surveyed by Bloomberg on October 9 said they expect the Bank of Israel to lower the base rate by a quarter-point to 5.25% on October 23.

The Bank of Israel said in Monday's report that its survey of forecasters over the past 30 days showed that average inflationary expectations for the next 12 months fell to 1.7% from 2% in September, the lowest since January.

Yields in the bond market over the past 30 days showed inflationary expectations of 1.6% over the next 12 months, the lowest since January 2005, down from 1.9% in September and August, the central bank said.