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Bank of Israel Holds Rate at 3.25%

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Story summary
  • Bank of Israel Governor Prof. Amir Yaron warned unchecked defense spending will raise deficit and inflation.
  • The Monetary Committee left the benchmark interest rate unchanged at 3.25% per annum.
  • September consumer price index rose 0.5% while annual inflation continued to fall.
  • Bank of Israel Research projects the benchmark rate will fall to 3.0% within a year.
  • Outlook forecasts GDP growth of 5.6% in 2026 and 7.5% in 2027.