US EditionBank of Israel cuts rate by 25 basis points, first easing by developed country
- The Bank of Israel's monetary committee has lowered interest rates by a quarter-point to 4.5%, the first reduction in almost four years, due to falling inflation and concerns about the economic impact of the Gaza war.
- Analysts were divided on the decision, with seven expecting no change and seven predicting a 25 basis point reduction. The Finance Ministry estimates a budget deficit of around 6% of GDP in 2024.
- Governor Amir Yaron emphasized the need for responsible budget adjustments to prevent rising debt and its potential consequences on inflation and interest rates.
21 Articles
21 Articles
Bank of Israel cuts interest rates by 25 bps amidst war, easing inflation
The Bank of Israel lowered short-term borrowing rates for the first time in nearly four years. It had raised rates 10 straight times in an aggressive tightening cycle that took the rate from 0.1% last April before pausing in July and again in August, October and November
Israel Delivers First Rate Cut Since Pandemic as War Rages
Israel’s central bank warned the government’s fiscal response to the war against Hamas risks pushing the country into greater debt and could be an obstacle to further monetary easing, after it cut interest rates for the first time since the height of the global pandemic in 2020.
Bank of Israel cuts interest rate for first time in two years
The Bank of Israel's monetary committee lowered interest rates for the first time in nearly four years on Monday, amid signs of falling inflation and concerns of an economic slowdown as a result of the Gaza war.
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