Hold had been penciled in by markets: At its 20 August meeting, the Riksbank left its policy rate unchanged at...
BOI Interest Rate in Israel
The BOI Interest Rate (%, eop) ended 2024 at 4.50%, down from the 4.75% end-2024 value and up from the reading of 0.25% a decade earlier. For reference, the average interest rate in Middle East & North Africa was 6.72% at end-2024. For more information on interest rate, visit our dedicated page.
Israel Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Israel from 2014 to 2025.
Source: Macrobond.
Israel Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| BOI Interest Rate (%, eop) | 0.10 | 3.25 | 4.75 | 4.50 | 4.25 |
| 10-Year Bond Yield (%, eop) | 1.28 | 3.58 | 3.95 | 4.47 | 3.91 |
Central Bank cuts rates again in July
Latest bank decision: At its meeting on 6 July, the Central Bank decided to cut its policy rate by a further 25 basis points to 3.25%, following 75 basis points of cuts from October to May.
Soft inflation enables another cut: The Bank chose to ease policy partly owing to tepid inflation, which remains near the center of the Bank of Israel’s 1.0–3.0% target range. The blow to GDP growth from conflict with Iran and Hezbollah were likely further drivers of the cut to interest rates.
More reductions are possible: The Central Bank’s forward guidance was open-ended. Most panelists see the Bank staying on hold through the end of 2026, with a minority expecting rates to increase or fall.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Israeli interest rate projections for the next ten years from a panel of 11 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Israeli interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Israeli interest rate projections.
Want to get access to the full dataset of Israeli interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
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