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Bank of Israel Cuts Rate to 3.25%

9/2/2026

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Story summary
  • Bank of Israel cut its benchmark rate by 0.25 point to 3.25% on Tuesday, its third reduction this year.
  • Inflation fell to 1.5% in July, landing within the central bank’s 1%-3% target range.
  • The shekel appreciated about 10% against the dollar this year, easing imports but hurting exporters.
  • Discount Bank chief economist Einat Meir said no further cuts should occur before the Oct. 21 election.