The Bank of Israel cut its benchmark interest rate by 25 bps to 3.75% during its May 2026 meeting, as widely anticipated, after keeping it unchanged in February and January. The decision was driven by a strong shekel, contained inflation, and prospects of a potential agreement to end the war with Iran, despite still significant geopolitical uncertainty. The central bank noted that “inflation in Israel remains around the midpoint of the target.” The headline inflation stood at 1.9% in April 2026, unchanged from March and staying within the Bank of Israel’s 1%–3% target band for nine consecutive months. Meanwhile, policymakers noted that GDP contracted 3.3% at an annual rate in Q1, reflecting the impact of Operation Roaring Lion, but the decline was smaller than expected and less severe than during Operation Rising Lion in June 2025. Current indicators of economic activity point to a recovery. The central bank said future rates will be guided by both domestic and external factors. source: Bank of Israel

The benchmark interest rate in Israel was last recorded at 3.75 percent. Interest Rate in Israel averaged 4.95 percent from 1996 until 2026, reaching an all time high of 17.00 percent in June of 1996 and a record low of 0.10 percent in March of 2015. This page provides - Israel Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Israel Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2026.

The benchmark interest rate in Israel was last recorded at 3.75 percent. Interest Rate in Israel is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Israel Interest Rate is projected to trend around 3.00 percent in 2027 and 3.50 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-02-23 02:00 PM Interest Rate Decision 4% 4% 3.75% 3.75%
2026-03-30 01:00 PM Interest Rate Decision 4% 4% 4% 4%
2026-05-25 01:00 PM Interest Rate Decision 3.75% 4% 3.75% 3.75%
2026-07-06 01:00 PM Interest Rate Decision 3.75% 3.75%
2026-08-31 01:00 PM Interest Rate Decision 3.5%
2026-10-21 02:00 PM Interest Rate Decision 3.5%


Related Last Previous Unit Reference
Banks Balance Sheet 3012163.00 2990389.00 ILS Million Feb 2026
Central Bank Balance Sheet 853320.00 843831.00 ILS Million Nov 2025
Foreign Exchange Reserves 235745.00 229419.00 USD Million Apr 2026
Interest Rate 3.75 4.00 percent May 2026
M1 Money Supply YoY 534122.00 551382.00 ILS Million Mar 2026
Money Supply M2 1517688.92 1494673.32 ILS Million Jan 2026
Money Supply M3 2183977.00 2118685.00 ILS Million Dec 2025


Israel Interest Rate
In Israel, the interest rates decisions are taken by the Bank of Israel. The official interest rate is the "headline" rate.
Actual Previous Highest Lowest Dates Unit Frequency
3.75 4.00 17.00 0.10 1996 - 2026 percent Daily

News Stream
Bank of Israel Resumes Easing Cycle as Expected
The Bank of Israel cut its benchmark interest rate by 25 bps to 3.75% during its May 2026 meeting, as widely anticipated, after keeping it unchanged in February and January. The decision was driven by a strong shekel, contained inflation, and prospects of a potential agreement to end the war with Iran, despite still significant geopolitical uncertainty. The central bank noted that “inflation in Israel remains around the midpoint of the target.” The headline inflation stood at 1.9% in April 2026, unchanged from March and staying within the Bank of Israel’s 1%–3% target band for nine consecutive months. Meanwhile, policymakers noted that GDP contracted 3.3% at an annual rate in Q1, reflecting the impact of Operation Roaring Lion, but the decline was smaller than expected and less severe than during Operation Rising Lion in June 2025. Current indicators of economic activity point to a recovery. The central bank said future rates will be guided by both domestic and external factors.
2026-05-25
Central Bank Israel Leaves Rates Steady
The central bank of Israel left the key interest rate steady at 4% in its March 2026 meeting, in line with expectations, noting that there has been an increase in the inflation environment, mainly due to a marked increase in global energy prices. Policymakers also said that since the beginning of Operation “Roaring Lion”, geopolitical uncertainty has grown both domestically and globally, particularly with regard to the expected duration and intensity of the fighting and how it will end. The central bank revised its economic forecasts, with the baseline scenario assuming that Operation Roaring Lion and the fighting in Lebanon will end toward the end of April, and the direct economic impact of the military operation will remain as long as the fighting continues. GDP is expected to grow by 3.8% in 2026 and by 5.5% in 2027, compared with 5.2% and 4.3%, respectively, in the January forecast. The inflation rate is expected to be 2.2% in 2026 and 1.8% in 2027.
2026-03-30
Bank of Israel Keeps Key Rate Unchanged at 4%
The Bank of Israel kept its benchmark interest rate unchanged at 4% in February 2026, following two consecutive rate cuts. Although inflation has moderated and the shekel has strengthened, the Central Bank highlights risks of a renewed increase of inflation. Geopolitical uncertainty has increased in recent days, particularly surrounding the possibility of a US strike on Iran, which could weigh on economic activity. Additional inflationary pressures may stem from strong domestic demand, ongoing supply constraints, and fiscal developments. However, inflation remains within the central bank’s target range, easing to 1.8% in January, marking its lowest level since June 2021 and close to the midpoint of the target range. The shekel appreciated modestly against both the US dollar and the euro. Meanwhile, economic activity continues to expand, with the latest quarterly growth rate accelerating to 4.4%. The labor market also remains tight.
2026-02-23