The inflation increase and the expansion of Gaza’s war means that the interest rate cannot be avoided until the end of 2025.
The Bank of Israel’s Monetary Committee, led by Governor Prof. Amir Yaron, announcing that it focuses on interest rate without change at 4.5%, as expected. This is the sixteenth hour that the Bank of Israel left the interest rate unchanged, after cutting it from 4.75% on January 2024.
The decision was due to the recent increase in the annual inflation rate of 3.6%, after higher than the annual year of 1% -3%. The bank of Israel said, “The project of forecasters that the collusion of inflation in the target range may later in their analysis before publication in April CPI.”
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The Bank of Israel also concerns the effect of economic uncertainty and fiscal in the magnificent effort in Gaza war as well as the restricted work market. The Bank of Israel said, “Because of the continued war, the monetary committee’s policy focuses on the market, which is supported by the activity of markets, continuing financial activities, and financial policies.”
Analysts expect no raise increase until the end of the fourth quarter of 2025.
Published in Globes, Israel News in News – en.globes.co.il – On May 26, 2025.
© Copyright in Globes Publisher Itonut (1983) Ltd., 2025.
Bank of Israel Governor Amir Yaron Credit: Eyal Izhar, Bogdansky
