Bank of Israel holds interest rates steady amid fears of Iran conflict
The Bank of Israel kept its benchmark rate at 4 percent today due to geopolitical risks involving Iran. This move follows easing inflation and a strong shekel.
The Bank of Israel 
IL held its benchmark interest rate steady at 4% today, February 23, 2026, following two prior cuts to the policy rate. The central bank cited renewed geopolitical risk stemming from a possible strike by the United States 
US on Iran 
IR as the primary reason for the pause, noting that the threat has raised Israel's risk premium. This decision marks a shift in the central bank's recent monetary policy trajectory and is expected to influence both inflation and market stability across the country.
IL held its benchmark interest rate steady at 4% today, February 23, 2026, following two prior cuts to the policy rate. The central bank cited renewed geopolitical risk stemming from a possible strike by the United States US on Iran IR as the primary reason for the pause, noting that the threat has raised Israel's risk premium. This decision marks a shift in the central bank's recent monetary policy trajectory and is expected to influence both inflation and market stability across the country.
