Rates remain at some of the highest levels in recent history as expected: At its meeting on 5 June, the...
BOI Interest Rate in Israel
The boi interest rate ended 2024 at 4.50%, compared to the end-2023 value of 4.75% and the figure a decade earlier of 0.25%. It averaged 1.25% over the last decade. For more interest rate information, visit our dedicated page.
Israel Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Israel from 2024 to 2023.
Source: Macrobond.
Israel Interest Rate Data
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| BOI Interest Rate (%, eop) | 0.25 | 0.10 | 0.10 | 3.25 | 4.75 |
| 10-Year Bond Yield (%, eop) | 0.96 | 0.77 | 1.28 | 3.58 | 3.95 |
Central Bank leaves rates unchanged in May
Latest bank decision: At its meeting on 26 May 2025, the Central Bank decided to leave the interest rate unchanged at 4.50%, where it has been since the start of 2024.
Monetary policy drivers: The Central Bank likely judged it was premature to cut rates given that the labor market is tight, and that inflation is above the Bank’s 1.0–3.0% target range and should stay above target in the coming months. On the flipside, hiking rates was not warranted either, as market inflation expectations for the coming year were still well anchored at the midpoint of the target range.
Monetary easing still the baseline scenario: The Central Bank provided no explicit forward guidance on the future direction of interest rates. Most of our panelists expect rate cuts in 2025, of either 25 or 50 basis points. However, one panelist sees rates on hold. The risk appears to be towards fewer or no rate cuts this year given stubborn price pressures.
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.
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