Bank of Israel holds rates after three consecutive cuts

The Bank of Israel held its benchmark interest rate at 3.25%, pausing after three consecutive cuts as inflation remained within its 1%–3% target range. The decision came shortly before a general election, with political and geopolitical uncertainty weighing on the outlook despite stable price pressures. The central bank cited continued economic growth and raised its forecasts, projecting growth of 5.6% this year and 7.5% in 2027, while noting the shekel had weakened. Economists had widely anticipated the pause, with some expecting further rate cuts if inflation stays contained and economic conditions allow.