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Bank of Israel Considers Rate Cut Amid Record Bank Profits

11/24/2025

47 7 Full Breakdown

Summary

Story summary

The Bank of Israel expects to cut its benchmark rate from 4.5% due to 2.5% inflation and postwar needs.
Political uncertainty around budget and a military conscription bill may delay the decision.
The five largest banks reported record profits of NIS 8.7 billion in Q3 2025.
The Finance Ministry plans a new tax on these banks to address the fiscal gap, and critics say it may not significantly reduce profits.

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Story summary

The Bank of Israel expects to cut its benchmark rate from 4.5% due to 2.5% inflation and postwar needs.
Political uncertainty around budget and a military conscription bill may delay the decision.
The five largest banks reported record profits of NIS 8.7 billion in Q3 2025.
The Finance Ministry plans a new tax on these banks to address the fiscal gap, and critics say it may not significantly reduce profits.