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Bank of Israel cuts rates to 4.0% as inflation moderates

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Governor Amir Yaron's Monetary Committee voted to lower the benchmark rate by 25bp to 4.0%, the second consecutive cut, citing moderating inflation, a stronger shekel and improving labor-market data. The Bank of Israel forecast projected further cumulative cuts of 0.5 percentage points by the end of 2026 if geopolitical and fiscal conditions remain stable.

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Secondary sources:1
Courtroom-sketch editorial illustration of a solar calculator from a 2024 photograph, with its display left blank; symbolic economic context, not a calculation or figure from the report.

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Timeline: Israel's Interest-Rate Cycle

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