The Bank of Israel cut its policy rate by 25 bps to 3.25% at its September 2026 meeting, contrary to market expectations for rates to remain unchanged. It was the third consecutive rate cut, bringing the policy rate to its lowest level since 2022. Policymakers noted that inflation had moderated, with the current rate of inflation below the midpoint of the 1%–3% target range, helped by a strong shekel against the dollar. At the same time, economic activity expanded 15.4% annualized in Q2, the fastest pace in more than two years. Excluding prodution abroad, growth in the first half of the year was more moderate. Still, policymakers also noted high uncertainty amid geopolitical tensions, although the risk premium remained broadly stable. Looking ahead, inflation is expected to remain around the midpoint of the target range, while economic activity appears to have slowed at the start of Q3. Future decisions will focus on price stability, while providing support for economic activity. source: Bank of Israel

The benchmark interest rate in Israel was last recorded at 3.25 percent. Interest Rate in Israel averaged 4.94 percent from 1996 until 2026, reaching an all time high of 17.00 percent in June of 1996 and a record low of 0.10 percent in March of 2015. This page provides - Israel Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Israel Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2026.

The benchmark interest rate in Israel was last recorded at 3.25 percent. Interest Rate in Israel is expected to be 3.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Israel Interest Rate is projected to trend around 3.00 percent in 2027 and 3.50 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-05-25 01:00 PM Interest Rate Decision 3.75% 4% 3.75% 3.75%
2026-07-06 01:00 PM Interest Rate Decision 3.5% 3.75% 3.5% 3.5%
2026-09-01 01:00 PM Interest Rate Decision 3.25% 3.5% 3.5% 3.5%
2026-10-21 02:00 PM Interest Rate Decision 3.25% 3.5%
2026-11-23 02:00 PM Interest Rate Decision 3.5%


Related Last Previous Unit Reference
Banks Balance Sheet 3250667.00 3128849.00 ILS Million May 2026
Central Bank Balance Sheet 813107.00 793830.00 ILS Million Jul 2026
Foreign Exchange Reserves 241641.00 238791.00 USD Million Aug 2026
Interest Rate 3.25 3.25 percent Sep 2026
M1 Money Supply YoY 565827.00 563735.00 ILS Million Jun 2026
Money Supply M2 1537394.78 1526174.10 ILS Million May 2026
Money Supply M3 2219080.77 2188269.41 ILS Million May 2026


Israel Interest Rate
In Israel, the interest rates decisions are taken by the Bank of Israel. The official interest rate is the "headline" rate.
Actual Previous Highest Lowest Dates Unit Frequency
3.25 3.25 17.00 0.10 1996 - 2026 percent Daily

News Stream
Bank of Israel Cuts Key Rate to 3.25%
The Bank of Israel cut its policy rate by 25 bps to 3.25% at its September 2026 meeting, contrary to market expectations for rates to remain unchanged. It was the third consecutive rate cut, bringing the policy rate to its lowest level since 2022. Policymakers noted that inflation had moderated, with the current rate of inflation below the midpoint of the 1%–3% target range, helped by a strong shekel against the dollar. At the same time, economic activity expanded 15.4% annualized in Q2, the fastest pace in more than two years. Excluding prodution abroad, growth in the first half of the year was more moderate. Still, policymakers also noted high uncertainty amid geopolitical tensions, although the risk premium remained broadly stable. Looking ahead, inflation is expected to remain around the midpoint of the target range, while economic activity appears to have slowed at the start of Q3. Future decisions will focus on price stability, while providing support for economic activity.
2026-09-01
Israel Slashes Key Policy Rate to 3.5% as Forecast
The Bank of Israel lowered its policy rate by 25 bps to 3.50% at its July 2026 meeting, as anticipated, delivering a second straight rate cut and bringing the policy rate to its lowest level since 2022. memorandum of understanding between the US and Iran. Policymakers noted that inflation remained around the midpoint of the target range in May, while Israel's risk premium returned to pre-October 2023 levels. Annual inflation held at 1.9% for a third straight month in May, remaining well within the Bank of Israel's 1%–3% target range. Governor Amir Yaron said forecasts show inflation easing to around the midpoint of the target range over the next year, allowing for further policy easing. Meanwhile, the central bank added that recent indicators point to a continued economic recovery following the slowdown at the start of the conflict with Iran, with GDP projected to grow 4.0% in 2026 and 5.5% in 2027.
2026-07-06
Bank of Israel Resumes Easing Cycle as Expected
The Bank of Israel cut its benchmark interest rate by 25 bps to 3.75% during its May 2026 meeting, as widely anticipated, after keeping it unchanged in February and January. The decision was driven by a strong shekel, contained inflation, and prospects of a potential agreement to end the war with Iran, despite still significant geopolitical uncertainty. The central bank noted that “inflation in Israel remains around the midpoint of the target.” The headline inflation stood at 1.9% in April 2026, unchanged from March and staying within the Bank of Israel’s 1%–3% target band for nine consecutive months. Meanwhile, policymakers noted that GDP contracted 3.3% at an annual rate in Q1, reflecting the impact of Operation Roaring Lion, but the decline was smaller than expected and less severe than during Operation Rising Lion in June 2025. Current indicators of economic activity point to a recovery. The central bank said future rates will be guided by both domestic and external factors.
2026-05-25