Bank of Israel

Exporters have called on the Bank of Israel to lower rates or intervene in the foreign exchange market.

Avraham Novogrocki, president of Israel’s Manufacturers’ Association, which represents some 1,500 firms and 400,000 workers, said the strong shekel posed a risk to the economy.

Ministry of Finance director general Ilan Rom also announced his resignation following the passage of the 2026 state budget by the Knesset

As one financial year ended and 2026 began, the hard numbers tell the story of what has been and what may lie ahead. 

Even before the current campaign, the Bank of Israel said in February that geopolitical uncertainty had resurfaced amid the prospect of a confrontation with Iran.

In the event of an extensive ground operation in Lebanon, the legislative process will start all over again, with revised deficit and growth forecasts

The bank said eligible customers receiving child allowances will get the money automatically in a two-year deposit as part of a broader push to encourage household savings.

Israel’s adaptable economy makes it a compelling long-term bet, with seasoned hedge fund manager Ron Senator explaining why investors are still betting on Israel regardless of the war.

Bank says credit expanded 13.4% in 2025 as asset quality improved and the board approved a NIS 1.239b. fourth-quarter distribution.

While the sovereign rating remains at BAA1, the shift reflects a clear easing of risk compared with the peak of the war period.