Bank of Israel maintains short-term interest rates for 10th consecutive meeting

Published 07/04/2025, 14:26
Bank of Israel maintains short-term interest rates for 10th consecutive meeting

Investing.com -- The Bank of Israel has chosen to hold its short-term interest rates steady for the 10th consecutive meeting on Monday. This decision comes amidst the resumption of the conflict between Israel and the Palestinian terrorist group, Hamas, in Gaza.

On Monday, the Bank of Israel announced that it would maintain its base rate at 4.5%. The last change in the base rate occurred in January 2024, when the bank reduced the rate by 25 basis points. This decision was made in response to a decrease in inflation and a slowing of economic growth due to the ongoing war in Gaza.

Since then, the Bank of Israel has maintained a steady policy, stating that it has no immediate plans to ease the rate again while inflation continues to exceed the target. The bank remains cautious in its approach as the conflict in Gaza persists.

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