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Bank of Israel makes third successive rate cut
The central bank said 1.5% inflation and a stronger shekel gave it room to support economic activity.
- On Tuesday, the Israel Monetary Committee, headed by Governor Prof. Amir Yaron, cut the interest rate 0.25% to 3.25%, marking the third successive interest rate cut for The Bank.
- Annual Inflation currently stands at 1.5%, placing it within the government's 1%-3% price stability target range, giving The Bank additional room to reduce borrowing costs.
- National Accounts data for the second quarter of 2026 show that GDP was 6.2% higher than in the fourth quarter of 2025; the prime lending rate now stands at 4.75%.
- Gasoline prices jumped to a record NIS 8.25 per liter for 95-octane fuel on Tuesday, a rise expected to feed into the consumer price index as the stronger shekel complicates conditions for Israeli exporters.
- Uncertainty remains high in view of geopolitical tensions, and price increases are expected to accelerate in the coming months, which could add to inflationary pressure despite the rate cut.
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12 Articles
12 Articles
The central bank of Israel surprisingly lowers the key interest rate to 3.25%. The move is against the trend of other central banks towards a tighter monetary policy.
·Düsseldorf, Germany
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In particular, the base interest rate now stands at 3.5% from 3.75%.
Coverage Details
Total News Sources12
Leaning Left1Leaning Right2Center2Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
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