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. source: Bank of Israel

Interest Rate in Israel averaged 5.04 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 July of 2022.

Interest Rate in Israel is expected to be 0.75 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 1.00 percent in 2023 and 0.75 percent in 2024, according to our econometric models.

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Israel Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-02-21 02:00 PM 0.1% 0.1% 0.1% 0.1%
2022-04-11 01:00 PM 0.35% 0.1% 0.25% 0.25%
2022-05-23 01:00 PM 0.75% 0.35% 0.6% 0.35%
2022-07-04 01:00 PM 0.75% 1.25% 1.25%
2022-08-22 01:00 PM
2022-10-03 02:00 PM


Related Last Previous Unit Reference
Interest Rate 0.75 0.35 percent May 2022
Interbank Rate 1.36 1.36 percent Jul 2022
Money Supply M1 711927.00 728568.00 ILS Million May 2022
Money Supply M2 1356355.70 1333664.40 ILS Million Apr 2022
Money Supply M3 1756678.00 1719401.00 ILS Million Apr 2022
Foreign Exchange Reserves 199808.00 197630.00 USD Million May 2022
Banks Balance Sheet 2168585.00 2115821.00 ILS Million Nov 2021
Central Bank Balance Sheet 805611.00 789617.00 ILS Million Nov 2021
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
0.75 0.35 17.00 0.10 1996 - 2022 percent Daily

News Stream
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
Israel Raises Interest Rate for 1st Time since 2018
The Bank of Israel increased its key interest rate to 0.35% from 0.1% on April 11th 2022, the first rate hike since 2018 and above market forecasts of 0.25%. The central bank noted that the Israeli economy is recording strong growth, accompanied by a tight labor market and an increase in the inflation environment, allowing for the start of a gradual process of increasing the interest rate. Still, further rate hikes will be determined by activity data and the development of inflation. Policymakers also noted that the war in Ukraine and the increase in morbidity in China are deepening the interruptions in the global production chains, increasing inflationary pressure, and leading to some slowdown in the pace of global economic activity.
2022-04-11
Israel Leaves Monetary Policy Unchanged at 0.1%
The Bank of Israel held its benchmark interest rate at a record low of 0.1% for a 15th straight policy meeting on February 21st of 2022, in line with market expectations, but noted that in the coming months, conditions will allow for the start of a gradual process of raising the interest rate. The GDP grew by 8.1% in 2021, beyond the forecast growth, amid a rapid COVID-19 vaccination roll-out in which 46% of Israelis have received the booster shot. Also, for the first time since 2011, the start of the COVID-19 crisis, the GDP level crossed the pre-crisis trendline. Meanwhile, the annual inflation increased to 3.1% in February from 2.8% in January, around the upper bound of the target range of 1%-3% and more than market estimates. The forecasts project that inflation will remain around the upper bound of the target range in the coming months, and is then expected to decline toward the midpoint of the range.
2022-02-21