Back to today’s briefing

Story perspectives

Bank of Israel Cuts Rates Again Amid Economic Recovery

1/6/2026

43 8 Full Breakdown

Summary

Story summary

The Bank of Israel lowered its policy rate to 4% for the second time, citing faster recovery after the Hamas conflict.
It projects 2025 growth at 2.8% and 2026 at 5.2%, revised upward, and budget approval is crucial to market confidence.
Governor Amir Yaron said indicators have improved and the rate could fall to 3.5% by end-2026 if stability and sound policy hold.

1 of 1

Story summary

The Bank of Israel lowered its policy rate to 4% for the second time, citing faster recovery after the Hamas conflict.
It projects 2025 growth at 2.8% and 2026 at 5.2%, revised upward, and budget approval is crucial to market confidence.
Governor Amir Yaron said indicators have improved and the rate could fall to 3.5% by end-2026 if stability and sound policy hold.