Bank of Israel Cuts Rate to 3.25%

The Bank of Israel lowered its benchmark interest rate by 0.25 percentage points to 3.25%, marking its third consecutive cut, the central bank announced. Officials cited moderating inflation and a continued economic recovery as key factors behind the decision, while cautioning that geopolitical uncertainty remains elevated. The move signals growing confidence within Israel's financial leadership that the economy is stabilizing even as security concerns persist across the region. Lower borrowing costs are expected to ease pressure on mortgage holders and businesses navigating a challenging fiscal environment. The Bank of Israel's decision reflects a broader effort to balance economic growth with price stability, as policymakers continue to monitor inflation trends and external risks tied to the ongoing regional conflict and global market conditions.