Bank of Israel cuts rate to 3.75% signaling economic stability
The Bank of Israel just dropped its main interest rate to 3.75%, a move that signals things are looking more stable for the country's economy.
This follows the previous two meetings in which rates were held steady because of inflation and growth risks tied to the Iran war.
The decision matched the median projection of 14 economists in a Bloomberg survey.
Inflation forecast drops to 1.8%
Looking ahead, future rate changes will hinge on how inflation behaves, plus factors like economic growth and global events.
A recent survey showed inflation might cool down even more over the next 12 months (May 2026-May 2027), dropping from 2.3% to 1.8%.
Meanwhile, the Israeli shekel was trading around 2.9 against the US dollar, close to its strongest position in over 30 years—a sign that prices could stay in check for a while.