Low inflation allows Israel to continue easing cycle
Borrowing costs reach almost four-year low as central bank makes quarter point cut
The Bank of Israel lowered its policy rate by 25 basis points to 3.25% on September 1, marking its third consecutive cut and taking borrowing costs to their lowest level in nearly four years. The decision came as a surprise to some market observers, who had anticipated a hold.
In its statement, the bank said inflation had moderated in recent months, with annual price growth easing to 1.5% in July from 1.6% in June and remaining comfortably within its 1–3% target range.
However, the bank said its
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