Israel Interest Rate

Israel Interest Rate

BOI Interest Rate in Israel

The BOI Interest Rate ended 2022 at 3.25%, up from the 0.10% end-2021 value and higher than the rate of 1.00% a decade earlier. For reference, the average BOI Interest Rate in Middle East & North Africa was 5.80% at the end of 2022. For more interest rate information, visit our dedicated page.

Israel Interest Rate Chart

Note: This chart displays Policy Interest Rate (%) for Israel from 2014 to 2023.
Source: Central Bank of Israel.

Israel Interest Rate Data

2018 2019 2020 2021 2022
BOI Interest Rate (%, eop) 0.25 0.25 0.10 0.10 3.25
10-Year Bond Yield (%, eop) 2.27 0.96 0.77 1.28 3.58

Central Bank kicks off loosening cycle in January

At its 1 January meeting, the Bank of Israel (BOI) lowered the policy rate by 25 basis points to 4.50%, meeting the expectations of most market analysts. The move marked the first cut since April 2020 and came on the heels of November’s hold and a cumulative increase of 465 basis points between early 2022 and May 2023.

The move was driven by the need to reduce uncertainty amid the ongoing war with Hamas, as the Bank tried to stabilize markets, while ensuring price stability and supporting overall economic activity. Moreover, inflation has continued to decline, and inflation expectations remained anchored within the BOI’s 1.0–3.0% target range. All these factors gave the Bank ample room to kick off its loosening cycle.

The communiqué was void of forward guidance. However, the Bank shifted its focus toward supporting economic activity amid the war and declining inflation. All of our panelists see further cuts this year. The next meeting is set for 26 February.

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 9 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

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