Bank of Israel cuts rates again

The Bank of Israel lowered its benchmark lending rate by 25 basis points on 27 November. This second reduction in two months takes rates to 5%.

The latest cut takes rates to their lowest level since April 2005 and comes after the October inflation data showed that consumer prices fell by 0.2% in the year through as the shekel strengthened against the dollar and world oil prices fell.

The central bank also noted that inflation expectations have declined over the last two months. In October and