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Bank of Israel Cuts Rate to 3.75% Amid Strong Shekel

5/27/2026

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Summary

Story summary

Bank of Israel, led by Governor Amir Yaron, cut rate from 4% to 3.75% on May 25, 2026, citing an 8.3% shekel rise versus the dollar and inflation at 1.9% within target.
Exporters, about 40% of activity, said Yaron acted too late and urged a larger cut and FX intervention.
Analysts expect another July cut if the fragile ceasefire holds, noting the shekel’s strength comes from a weak dollar and foreign inflows.

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Story summary

Bank of Israel, led by Governor Amir Yaron, cut rate from 4% to 3.75% on May 25, 2026, citing an 8.3% shekel rise versus the dollar and inflation at 1.9% within target.
Exporters, about 40% of activity, said Yaron acted too late and urged a larger cut and FX intervention.
Analysts expect another July cut if the fragile ceasefire holds, noting the shekel’s strength comes from a weak dollar and foreign inflows.