Story perspectives
Bank of Israel Maintains Rate Amid Inflation, Trade Concerns
9/30/2025
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Story summary
- Bank of Israel kept the policy rate at 4.50% amid inflation and Gaza turmoil.
- Governor Amir Yaron warned Israel's growing global isolation could hurt trade.
- Despite calls to ease policy, he urged a cautious, local-condition approach.
- Inflation slowed to 2.9% in August.
- Second quarter (Q2) GDP fell 4%; full-year growth now seen at 2.5%.
