Latest bank decision: At its meeting on 18 March, the Bank of Canada held the target for the overnight rate...
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 | - |
Central Bank holds rates in February
Latest bank decision: At its meeting on 23 February, the Central Bank decided to keep its policy rate at 4.00%, following 50 basis points of cuts from October to January. This contrasted market expectations of a cut.
Bank in wait-and-see mode: The Bank decided to stay on hold to evaluate the impact of recent rate cuts. Though headline and core inflation have pulled back notably since the middle of 2025, the labor market is tight and economic activity is robust, which likely dissuaded further rate cuts. Elevated international uncertainty due to fluctuations in U.S. tariffs and possible U.S. military intervention in Iran was likely a further reason to stay on hold.
More monetary easing expected: The Central Bank provided no explicit forward guidance on the future direction of interest rates. All of our panelists expect at least one more rate cut before the end of 2026.
Panelist insight: On the outlook, Goldman Sachs’ analysts said: “Our baseline assumes no economically meaningful geopolitical escalation and, on this basis, we expect the BoI to cut by 25bp in March and in May. The October 7 war’s primary impact on Israel’s economy has been a severe labour shortage, leaving GDP about 5% below its pre-war trend, and we expect the unwinding of this supply constraint to simultaneously enable a period of above-potential growth and further disinflation.”
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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Canada: Bank of Canada holds rates in March -
Taiwan: Central Bank leaves rates unchanged in March Wait-and-see approach continues: At its meeting on 19 March, Taiwan’s Central Bank decided to keep the discount rate unchanged at... -
Switzerland: Swiss National Bank holds rates in March Latest bank decision: At its meeting on 19 March, the Swiss National Bank (SNB) held the policy rate at 0.00%.... -
United Kingdom: Central Bank holds rates in March Latest decision: In mid-March, the Central Bank voted to keep the bank rate at 3.75%, following cuts of 150 basis... -
United States: Central Bank keeps rates steady in March Latest bank decision: At its mid-March meeting, the Central Bank kept the target range for the federal funds rate at... -
Australia: Central Bank hikes rates in March Second straight hike: At its March meeting, the Central Bank decided to hike the cash rate from 3.85% to 4.10%,... -
Turkey: Central Bank holds rates in March Central Bank adopts wait-and-see approach: At its meeting on 12 March, the Central Bank of the Republic of Turkey (TCMB)...