Business

Bank of Israel cuts interest rates by 25 basis points

The central ⁠bank’s benchmark rate was reduced to 4.00% from 4.25%.

The Bank of Israel unexpectedly ‍cut its ‍short-term interest rate ​by 25 basis points on Monday, a ⁠second successive cut after lowering it ⁠in November for ‌the first time in nearly two years.

The central ⁠bank’s benchmark rate was reduced to 4.00% from 4.25%.

Annual Israeli inflation eased to a ⁠rate of 2.4% ​in November, within the government’s 1-3% target range.

Supply ‍constraints had stoked inflation during the ​two year war in Gaza that ended with a U.S.-brokered ceasefire in October 2025.

Despite easing price pressures and a four-year high for the shekel versus the dollar, nine of the 10 economists polled by ⁠Reuters had forecast the ‌central bank would hold rates this month, while one ‌economist ⁠expected a quarter-point reduction.

© ZAWYA 

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

Inside the automotive supply chain: Empirical evidence from Italian business-to-business trade data

Europe’s automotive industry is undergoing a significant transformation. This column uses firm-to-firm data to map…

4 days ago

Workers’ age and AI adoption

Numerous studies have analysed the effects of AI on productivity, growth and employment. Few of…

4 days ago

Some questions that a Bank of England review should ask

The Bank of England is approaching the 30th anniversary of operational independence and a wide-ranging…

4 days ago

The price elasticity of US shale oil supply: Insights from a natural experiment

The 2026 Iran war provides a natural experiment that allows model-free estimation of the price…

4 days ago

A view to a kill…ing of productivity: The allocative cost of war in Ukraine

Estimates of the cost of Russia’s war on Ukraine are dominated by what the war…

4 days ago

Spilling secrets and shrinking chains: How weak laws narrow supply networks

Modern manufacturing often requires firms to share confidential information with outside suppliers, some of whom…

4 days ago