Bank of Israel Policy Rate Cut to 3.75%
May 25, 2026
The policy interest rate of the Bank of Israel as expected has been lowered by 25 basis points today. This was the fourth such cut since the start of 2024 but only the first since this past January. At 3.75%, the new interest rate level is its lowest since September 2o23. The central bank’s statement explaining the latest cut does not primarily ascribe the move to war developments. “Geopolitical uncertainty remains significant.” Instead, officials note a strong rise of more than 8% in the shekel against the dollar since the last rate reduction is noted, and so too is the fact that CPI inflation of 1.9% remains in the middle of its 1-3% target range.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: Bank of Israel
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