Latest bank decision: At its meeting on 28 January, 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
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| BOI Interest Rate (%, eop) | 0.10 | 0.10 | 3.25 | 4.75 | 4.50 |
| 10-Year Bond Yield (%, eop) | 0.77 | 1.28 | 3.58 | 3.95 | 4.47 |
Central Bank cuts rates in January
Latest bank decision: At its meeting on 2 January, the Central Bank decided to cut its policy rate from 4.25% to 4.00%, marking the second cut in succession and contrasting market expectations for rates to stay on hold.
Inflation pullback drives decision: Headline and core inflation have pulled back notably since the middle of 2025, with both now sitting within the Bank of Israel’s 1.0–3.0% target range; this likely provided the space for continued monetary easing. Falling house prices and real estate transactions plus the strengthening of the shekel since the prior meeting in November likely further motivated the Bank’s decision.
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: “In light of the surprise to our forecast, we maintain our expectation for an additional 25bp cut later this quarter and additional 25bp cuts in Q2 and Q3, bringing the policy rate to our +3.25% estimate of neutral (albeit one quarter earlier than we had originally projected).”
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 10 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 January -
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