Bank of Israel cuts interest rate again
The Bank of Israel has cut interest rates by 0.25% to 3.5%, marking the second consecutive reduction as inflation remains stable and geopolitical tensions moderate. The bank projects continued GDP growth for 2026 and 2027.
Why it matters
Monetary policy shifts in Israel directly impact the shekel's strength and the cost of living, signaling a cautious economic recovery amid regional stability.
The Bank of Israel Monetary Committee, headed by Governor Prof. Amir Yaron, has cut the interest rate 0.25% to 3.5%, as most economists had expected, due to the strength of the shekel, stable prices with inflation well below the annual target range upper limit of 3%, and the fall in the risk premium for Israel,
The article relies on official statements from the central bank and economic forecasts.
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