Bank of Israel Leaves Benchmark Interest Rate Unchanged at 3.25%

The monetary committee paused rate cuts amid upcoming elections and regional security tensions.

The Bank of Israel's Monetary Committee decided to leave the benchmark interest rate unchanged at 3.25%, ynet and Behadrey Haredim reported. The decision followed three consecutive interest rate reductions, matching forecasts by market analysts.

According to ynet, the pause in rate cuts was prompted by uncertainty surrounding next week's Knesset elections, alongside elevated defense spending and concerns over a potential renewed conflict with Iran. Further details regarding the committee's decision and macroeconomic forecasts have not yet been released.