Jerusalem, 6 July, 2026 (TPS-IL) — The Monetary Committee of the Bank of Israel decided on Monday, July 6, 2026 to lower the Interest Rate to 3.5%, from 3.75%. This marks the second straight quarter in which the Bank reduced the interest rate.
In explaining the decision, the Bank said the inflation rate in May remained stable around the midpoint of the target range, and the risk premium is similar to before October 2023. Overall, during the reviewed period, the shekel depreciated with high volatility.
Current economic indicators point to continued recovery of activity following the sharp decline with the beginning of Operation Roaring Lion (the military confrontation with Iran in March–April).