Israel cuts rates by 25 basis points
Central bank’s updated forecast points to higher growth in 2026 than was previously predicted
The Bank of Israel has cut rates by 25 basis points to 4%.
At the press conference announcing the decision on January 5, governor Amir Yaron said the cut reflected a “moderating” inflation environment, a continued expansion of economic activity, a loosening labour market and falling house prices. He also pointed to a strengthening shekel, the risk premium of which was now back to its prewar level.
This was the second consecutive cut from the Bank of Israel, which eased policy by 25bp last November
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