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 November
Latest bank decision: At its meeting on 25 November, 2024, the Central Bank decided to leave the interest rate unchanged at 4.50%.
Monetary policy drivers: The Central Bank likely judged that it was premature to cut rates given that headline and core inflation are both above the upper bound of the Bank’s 1.0-3.0% target range. On the flipside, hiking rates was not warranted either, as price pressures appear to have broadly stabilized since August, the fiscal stance is expected to tighten in 2025, and the economy continues to be hampered by the war.
Policy outlook: There was no explicit forward guidance in the Central Bank’s press release, with future inflation, exchange rate movements and the developments of the war likely to play a key role in determining monetary policy ahead. All our panelists expect rate cuts in 2025, with forecasts ranging from one to four 25 basis-point cuts.
Panelist insight: On the outlook, Goldman Sachs’ analysts said: “we expect the BoI's cutting cycle to resume in Q1, although risks are clearly skewed towards a later cutting cycle. We do not expect the BoI to place a large weight on the weakness of activity data, as that weakness is driven primarily by supply constraints, particularly in the construction industry, while household consumption has largely recovered from the economic shock following October 7. Instead, the next cut will in our view be prompted by the external interest rate environment, particularly further Fed cuts.”
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.
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