Latest bank decision: At its meeting on 7 May, the Central Bank decided to cut the target for the overnight...
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 March
Latest bank decision: At its meeting on 30 March, the Central Bank decided to keep its policy rate at 4.00%, following 50 basis points of cuts from October to January and in line with market expectations.
Bank in wait-and-see mode: The Bank decided to stay on hold partly to evaluate the impact of recent rate cuts, partly because war against Iran and Hezbollah has greatly increased uncertainty over the outlook for economic activity and inflation.
More monetary easing expected: The Central Bank suggested interest rates would fall by between 25 and 50 basis points over the next 12 months. This broadly matches our panelists, who all 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 12 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.
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