The Bank of Israel kept its benchmark interest rate unchanged at 4% in February 2026, following two consecutive rate cuts. Although inflation has moderated and the shekel has strengthened, the Central Bank highlights risks of a renewed increase of inflation. Geopolitical uncertainty has increased in recent days, particularly surrounding the possibility of a US strike on Iran, which could weigh on economic activity. Additional inflationary pressures may stem from strong domestic demand, ongoing supply constraints, and fiscal developments. However, inflation remains within the central bank’s target range, easing to 1.8% in January, marking its lowest level since June 2021 and close to the midpoint of the target range. The shekel appreciated modestly against both the US dollar and the euro. Meanwhile, economic activity continues to expand, with the latest quarterly growth rate accelerating to 4.4%. The labor market also remains tight. source: Bank of Israel

The benchmark interest rate in Israel was last recorded at 4 percent. Interest Rate in Israel averaged 4.96 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 February of 2026.

The benchmark interest rate in Israel was last recorded at 4 percent. Interest Rate in Israel is expected to be 4.25 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 3.50 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-11-24 02:00 PM Interest Rate Decision 4.25% 4.5% 4.25% 4.25%
2026-01-05 02:00 PM Interest Rate Decision 4% 4.25% 4.25% 4.25%
2026-02-23 02:00 PM Interest Rate Decision 4% 4% 3.75% 3.75%
2026-03-30 01:00 PM Interest Rate Decision 4.25%
2026-05-25 01:00 PM Interest Rate Decision
2026-07-06 01:00 PM Interest Rate Decision


Related Last Previous Unit Reference
Banks Balance Sheet 2926486.00 2933401.00 ILS Million Nov 2025
Central Bank Balance Sheet 853320.00 843831.00 ILS Million Nov 2025
Foreign Exchange Reserves 233044.00 229484.00 USD Million Jan 2026
Interest Rate 4.00 4.00 percent Feb 2026
M1 Money Supply YoY 537370.00 555065.00 ILS Million Jan 2026
Money Supply M2 1477518.13 1479231.48 ILS Million Nov 2025
Money Supply M3 2183977.00 2118685.00 ILS Million Dec 2025


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
4.00 4.00 17.00 0.10 1996 - 2026 percent Daily

News Stream
Bank of Israel Keeps Key Rate Unchanged at 4%
The Bank of Israel kept its benchmark interest rate unchanged at 4% in February 2026, following two consecutive rate cuts. Although inflation has moderated and the shekel has strengthened, the Central Bank highlights risks of a renewed increase of inflation. Geopolitical uncertainty has increased in recent days, particularly surrounding the possibility of a US strike on Iran, which could weigh on economic activity. Additional inflationary pressures may stem from strong domestic demand, ongoing supply constraints, and fiscal developments. However, inflation remains within the central bank’s target range, easing to 1.8% in January, marking its lowest level since June 2021 and close to the midpoint of the target range. The shekel appreciated modestly against both the US dollar and the euro. Meanwhile, economic activity continues to expand, with the latest quarterly growth rate accelerating to 4.4%. The labor market also remains tight.
2026-02-23
Bank of Israel Cuts Benchmark Rate to 4%
The Bank of Israel cut its benchmark rate by 25 bps to 4% in January, marking a second consecutive cut at successive meetings. Headline inflation eased to a four-year low of 2.4% in November 2025, staying within the government’s 1%–3% target range for the fourth straight month, with expectations anchored near the midpoint. Economic activity continues to expand, supported by credit card spending, exports, and high-tech fundraising, while the risk premium remains close to pre-war levels. Labor market tightness has eased, with higher participation and employment rates and lower reserve-duty absenteeism. The shekel strengthened sharply against the US dollar and euro, lifting the nominal effective exchange rate. The Research Department forecasts GDP growth of 5.2% in 2026 and 4.3% in 2027, with inflation easing to 1.7% and 2%, respectively. Policymakers flagged risks from geopolitical uncertainty, potential price pressures from rising demand, and fiscal developments.
2026-01-05
Israel Delivers First Rate Cut in Nearly Two Years
The Bank of Israel cut its benchmark interest rate by 25 bps to 4.25% at its November meeting, marking the first reduction in nearly two years, as expected. Policymakers cited moderating inflation but emphasized caution regarding further easing. The move comes as major central banks worldwide have already begun loosening monetary policy and as last month’s US-brokered truce between Israel and Hamas holds. Annual inflation stood at 2.5% in October, within the official 1–3% target range for the third straight month. Forecasters expect a modest pickup toward year-end before inflation declines and stabilizes near the midpoint of the range. Economic activity rebounded sharply in Q3, with GDP expanding at an annualized 12.4%, though output remains below its long-term trend. The labor market also remains tight.
2025-11-24