Story perspectives
Israel Holds Interest Rate Amid Rising Regional Tensions
2/24/2026
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Israel's Rate Decision
- Israel's central bank kept its policy rate at 4% amid tensions over a United States (U.S.) attack on Iran.
- Finance Minister Bezalel Smotrich criticized the decision as detrimental to growth.
- Economists are split on cuts, noting the shekel's strength and inflation at 1.8%.
- The U.S. has increased military presence in the region, raising fears of conflict.
- Diplomatic talks between the United States and Iran are set to resume.
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