For third consecutive time: Interest rate cut

For the third consecutive time, the Bank of Israel announced Tuesday that it had decided to lower the interest rate by 0.25 percentage points. This is the fourth time since the beginning of 2026 that the Bank has cut the interest rate.

The interest rate will now stand at 3.25%, and as a result, the prime rate, on which most loans and mortgages in the economy are based, will fall to 4.75%.

The Bank of Israel said the reduction was supported by the annual inflation rate, which stands at just 1.5%, its lowest level since May 2021.

The move is economically significant, as the last time three consecutive interest-rate cuts were recorded was at the height of the financial crisis in 2008, when the Bank of Israel cut its interest rate five times in a row.

Dubi Amitai, chairman of the Presidium of Israel Business Organizations, said the decision was “a responsible and measured step that signals confidence in the Israeli economy and also represents an important vote of confidence in businesses and in the Israeli economy’s ability to continue growing.”