The central bank of Israel increased its key interest rate by 75bps to 2% during its August 2022 meeting, its fourth straight increase and the biggest in 2 decades, pushing borrowing costs to their highest level since late 2012. Policymakers noted that inflation continues to increase and is above the 1%-3% target range while economic activity remains strong, and the labor market tight. The central bank added that further interest rate increases will depend on economic data and the development of inflation. source: Bank of Israel

Interest Rate in Israel averaged 5.02 percent from 1996 until 2022, reaching an all time high of 17 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 September of 2022.

Interest Rate in Israel is expected to be 2.00 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 3.25 percent in 2023 and 2.00 percent in 2024, according to our econometric models.

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Israel Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-05-23 01:00 PM 0.75% 0.35% 0.6% 0.35%
2022-07-04 01:00 PM 1.25% 0.75% 1.25% 1.25%
2022-08-22 01:00 PM 2% 1.25% 1.5%
2022-10-03 01:00 PM 2%
2022-11-21 02:00 PM


Related Last Previous Unit Reference
Interest Rate 2.00 1.25 percent Aug 2022
Interbank Rate 2.80 2.80 percent Sep 2022
Money Supply M1 680436.00 713967.00 ILS Million Aug 2022
Money Supply M2 1382673.30 1377815.60 ILS Million Jul 2022
Money Supply M3 1766162.00 1788593.00 ILS Million Jul 2022
Foreign Exchange Reserves 192151.00 197469.00 USD Million Aug 2022
Banks Balance Sheet 2296395.00 2268344.00 ILS Million May 2022
Central Bank Balance Sheet 813499.00 798924.00 ILS Million Jun 2022
Loans to Private Sector 607.34 605.56 ILS Billion May 2018

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
2.00 1.25 17.00 0.10 1996 - 2022 percent Daily

News Stream
Israel Raises Rates for 4th Time
The central bank of Israel increased its key interest rate by 75bps to 2% during its August 2022 meeting, its fourth straight increase and the biggest in 2 decades, pushing borrowing costs to their highest level since late 2012. Policymakers noted that inflation continues to increase, and is above the 1%-3% target range while economic activity remains strong, and the labor market tight. The central bank added that further interest rate increases will depend on economic data and the development of inflation.
2022-08-22
Israel Delivers Biggest Rate Hike since 2011
The Bank of Israel raised its key interest rate by 50bps to 1.25% on July 4th 2022, the most since March 2011 and pushing borrowing costs to the highest since 2013, as the central bank is determined to return inflation to the 1-3% target after it topped 4%. Policymakers noted that economic activity in Israel is continuing at a high level and the labor market remains tight but the possible slowdown in global economic activity in view of the effects of the war in Ukraine and the slowdown in manufacturing activity in China, as well as the political uncertainty in Israel, may have a negative impact on economic activity. The central bank revised its growth forecasts lower by 0.5 percentage points to 5% in 2022 and 3.5% in 2023. The inflation rate is expected to be 4.5% in 2022, and to decline to 2.4% in 2023.
2022-07-04
Israel Hikes Interest Rate to 0.75%
The Bank of Israel increased its key interest rate to 0.75% from 0.35% on May 23rd, 2022, the second-rate hike since 2018 and above market forecasts of 0.6%. Policymakers noted that the Israeli economy is recording strong growth, accompanied by a tight labour market and a continued increase in the inflation environment. The Committee has therefore decided to continue the gradual process of increasing the interest rate, although the pace of rate-hike will be determined in accordance with activity data and the development of inflation. Meanwhile, inflation in Israel is exceeding the upper bound of the target range, at 4 percent over the past 12 months, significantly lower than in most advanced economies. Looking forward, the central bank sees one-year inflation expectations around the upper bound of the target range while longer-term expectations to remain anchored within the target range.
2022-05-23