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Israel interest rates

Illustrative: A largely empty pedestrian mall in central Jerusalem on August 2, 2026. (Yonatan Sindel/Flash90)
September 1, 2026, 8:54 pm
Bank of Israel slashes rates to four-year low to bolster postwar economic rebound
Central bank cuts borrowing costs to 3.25%, warning of only partial recovery; manufacturers accuse Governor Yaron of doing too little too late, as strong shekel batters exporters
By Sharon Wrobel
Governor of the Bank of Israel Amir Yaron speaks during a press conference at the Finance Ministry in Jerusalem on August 6, 2025. (Yonatan Sindel/ Flash90)
May 25, 2026, 9:57 pm
Bank of Israel cuts borrowing costs, while flagging geopolitical risks
Local manufacturers attack Governor Yaron for doing too little, too late, as the mighty shekel hurts competitiveness and profitability of exporters
By Sharon Wrobel
Banking supervisor Daniel Hahiashvili speaks at a press conference in Tel Aviv on May 19, 2025. (Sharon Wrobel/Times of Israel)
May 18, 2026, 7:03 pm
Regulator demands fairness from Israeli banks as they cash in on hefty fees
Banking supervisor warns that lenders that don’t treat their customers well will be ‘in trouble,’ sees the entry of new players catalyzing competition in the local banking system
By Sharon Wrobel
Illustrative photo of a shekel and a US hundred dollar bill, April 13, 2026. (Nati Shohat/Flash90)
May 8, 2026, 10:29 am
Shekel hits 33-year-peak, hammering exports, yet policymakers are insistently inactive
The strength of Israel’s currency is forcing exporters and startups to make tough decisions about hiring abroad and moving R&D centers out of Israel, stirring fears about future growth
By Sharon Wrobel
Illustrative: A woman carries her shopping near Talpiot Market in Haifa on August 4, 2024. (Canaan Lidor/Times of Israel)
February 23, 2026, 8:23 pm
Bank of Israel holds interest rates amid concerns over Iran escalation
Finance minister, manufacturers slam central bank for hesitating to lower borrowing costs for households and businesses with inflation slowing and the shekel strong
By Sharon Wrobel
Bank of Israel Governor Amir Yaron speaks at a press conference in Jerusalem, April 7, 2025. (Sharon Wrobel/ The Times of Israel)
January 5, 2026, 7:49 pm
In bold move, central bank cuts interest rates for 2nd straight time after ceasefire
Bank of Israel lowers rates to 4%, citing a moderation in inflation, a strong shekel, and growing labor market participation following the ceasefire agreement with Hamas
By Sharon Wrobel
Finance Minister Bezalel Smotrich, seen after a press conference in Jerusalem, December 4, 2025. (Yonatan Sindel/Flash90)
December 25, 2025, 8:42 pm
Smotrich threatens banks with extra taxes if they go after customers’ benefits
Finance minister threatens to double proposed new tax on excess profits slapped on lenders’ excessive income to 30%; banking shares plunge
By Sharon Wrobel
The Bank of Israel's main offices in Jerusalem, January 2, 2023. (Yonatan Sindel/ Flash90)
November 24, 2025, 9:02 pm
Central bank lowers rates for 1st time in nearly 2 years, cautions about pace of cuts
Bank of Israel says further interest rate cuts will depend on stability of geopolitical situation and government spending in upcoming 2026 budget; expects to cut rate 0.5% by next September
By Sharon Wrobel
Bank of Israel Governor Amir Yaron speaks at a press conference in Jerusalem, April 7, 2025. (Sharon Wrobel/ The Times of Israel)
September 29, 2025, 8:02 pm
Central bank again holds rates as governor warns prolonged Gaza war weighs on growth
Amir Yaron says high geopolitical and economic uncertainty, alongside volatile inflation trends, do not justify cutting interest rate; central bank reduces 2025 growth forecast
By Sharon Wrobel
The sun rises over Tel Aviv, October 2019. (ZZ3701 via iStock by Getty Images)
September 26, 2025, 7:32 am
Israel’s home prices have finally started falling. It’s not only about the Gaza war
Experts say insane prices, high interest rates and glut of new homes are causing prices to drop as much as 15-20% in some areas. Diaspora Jews eager for foothold in Jewish state are snapping them up
By Zev Stub
Co-founders of digital lender Esh Bank Israel, Nir Zuk (right) and Yuval Aloni (left), and its chairman Shmuel Hauser (middle), September 15, 2025. (Courtesy)
September 16, 2025, 7:36 pm
Israel’s newest digital bank to start offering zero-fee accounts in early 2026
Esh Bank Israel will operate accounts completely free of fee charges for both retail customers and small businesses, and share interest revenue with depositors
By Sharon Wrobel
Illustrative: People walk by a Bank Hapoalim branch in Tel Aviv on March 25, 2025. (Miriam Alster/FLASH90)
August 25, 2025, 8:38 am
As banks pig out on profits, top economist urges tax to keep them from hogging wealth
After seeing plans aimed at boosting competition fall short, former Bank of Israel research head Michel Strawczynski says levy on lenders’ excessive income will ease wartime burden
By Sharon Wrobel
Illustrative: View of the Bank Hapoalim offices in the center of Tel Aviv. August 4, 2015. (Miriam Alster/Flash90)
August 15, 2025, 8:47 am
Top banks notch record profits from credit and fee growth during wartime
Gap widens between banks’ soaring gains and the financial reality of ordinary Israelis
By Sharon Wrobel
A branch of Bank Leumi in central Jerusalem (Maxim Dinshtein/Flash90)
May 20, 2025, 10:53 pm
Major banks’ profits surge as they cash in on wartime credit and fee growth
As households and businesses grapple with high cost of living, rising mortgage rates, and growing credit and loan needs during war, Bank Hapoalim and Bank Leumi post big profits
By Sharon Wrobel
Banking supervisor Daniel Hahiashvili speaks at a press conference in Tel Aviv on May 19, 2025. (Sharon Wrobel/Times of Israel)
May 19, 2025, 6:46 pm
Israeli regulator calls for more competition as large banks cash in on hefty loan fees
Banking supervisor seeks to remove barriers for the entry of non-bank entities that will provide credit and saving tools, force current lenders to offer better terms and services
By Sharon Wrobel
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