Israel Interest Rates

Last ReleaseJan 05, 2026

Previous4.25

FrequencyDaily

Next ReleaseFeb 23, 2026

Time to Release0

Units In%

In Israel, the interest rates decisions are taken by the Bank of Israel. The official interest rate is the "headline" rate.

Latest Updates

The Bank of Israel cut its benchmark rate by 25 bps to 4% in January, marking a second consecutive cut at successive meetings. Headline inflation eased to a four-year low of 2.4% in November 2025, staying within the government’s 1%–3% target range for the fourth straight month, with expectations anchored near the midpoint. Economic activity continues to expand, supported by credit card spending, exports, and high-tech fundraising, while the risk premium remains close to pre-war levels. Labor market tightness has eased, with higher participation and employment rates and lower reserve-duty absenteeism. The shekel strengthened sharply against the US dollar and euro, lifting the nominal effective exchange rate. The Research Department forecasts GDP growth of 5.2% in 2026 and 4.3% in 2027, with inflation easing to 1.7% and 2%, respectively. Policymakers flagged risks from geopolitical uncertainty, potential price pressures from rising demand, and fiscal developments.

Historical Data

Highest	Lowest	Average	Date Range	Source
17	0.1	4.96 %	1996-2026	Bank of Israel