Bank of Israel holds rates at 4% and trims 2026 growth view
The central bank kept its rate at 4 percent due to inflation. Governor Amir Yaron said rate cuts remain possible as the 2026 growth forecast was trimmed to 3.8%.
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The central bank of Israel has maintained its benchmark interest rate at 4% for the second month in a row, as policymakers navigate inflation risks fueled by regional conflict and rising energy costs. Governor Amir Yaron indicated that while the rate remains unchanged for now, the possibility of future monetary easing has not been ruled out.
"Depending on (inflation) developments meeting expectations, it is possible to make another cut or two... but there are no promises regarding the interest rate," Yaron told a news conference.
