Bank of Israel Cuts Interest Rate to 3.25%

The Bank of Israel's Monetary Committee cut the policy interest rate by 0.25 percentage point, from 3.5% to 3.25%, effective September 3. The Bank said annual inflation stood at 1.5% after the consumer price index was unchanged in June and rose 0.3% in July. It also cited a tight labor market, a risk premium near pre-October 7, 2023 levels, and a 0.6% shekel appreciation against the dollar since the previous decision. The next rate decision is scheduled for October 21, 2026.