Bank of Israel

'Taxes will need to be raised': Bank of Israel Governor's bad news following rate cut

Bank of Israel Governor warns taxes must rise after rate cut; market reacts with gains on Tel Aviv Stock Exchange while business sector backs decision.

Amir Yaron, Governor of the Bank of Israel.
Bank of Israel Governor Professor Amir Yaron speaks at the Knesset; illustrative.

Third consecutive cut: Bank of Israel lowers interest rates to 3.25%, following economic review

Governor of the Bank of Israel Prof. Amir Yaron with members of the IDF Manpower Directorate launching the consumer and financial guidance program for IDF soldiers in need, August 12, 2026.

Financial education program for soldiers in need launched by IDF, Bank of Israel, nonprofits

Matan Shitrit, Chief Economist at Phoenix Financial

Israel in the eye of the storm — But the economy tells a different story


Bank of Israel chief critical of 2025 wartime budget

Bank of Israel governor criticized the country's 2025 budget, cautioning that it would not bring down debt levels enough to offset a spike in spending caused by the war.

Governor of the Bank of Israel Amir Yaron speaks during a press conference at the Bank of Israel offices in Jerusalem, on January 2, 2022.

Almost no GDP growth, labor shortage impacted by Palestinian worker ban - Bank of Israel on 2024

The central bank highlighted that gross domestic product went up by just 0.9% when compared to 2023, and productivity in the business sector shrank by 0.8%.

 View of Bank of Israel main offices in Jerusalem, on January 2, 2023.

Israel's open economy offset Turkish trade ban, central bank says

Turkey severed trade with Israel last year over its war in Gaza with the Palestinian terrorist group Hamas and has remained an outspoken critic of Israel's policies.

 BANK OF Israel headquarters in Jerusalem: Israel’s favorable environment for economic development has been accompanied by an impressive improvement in the country’s credit rating, say the writers.

Israel's Bank Hapoalim forecasts jump in profit in 2025

Hapoalim's shares were up 4.4% in afternoon trading in Tel Aviv and have gained more than 10% so far in 2025.

Bank Hapoalim.

Gazanomics: A look at Israel's wartime economy and what could derail it - analysis

The Bank of Israel’s economic forecast does sound too good to be true. A lot of things could derail it. Here are several causes for concern.

 Finance Minister Bezalel Smotrich.

Bank of Israel leaves benchmark rate at 4.5%, citing moderate economic recovery

"The interest rate will be set in accordance with inflation converging to its target, continued stability in the financial markets, economic activity, and fiscal policy," the bank said.

Governor of the Bank of Israel Amir Yaron speaks during a press conference at the Bank of Israel offices in Jerusalem, on January 2, 2022.

Bank of Israel to hold rates again after inflation spike - Reuters poll

The rate has stayed at 4.5% since January 2024, when it was cut from 4.75%.

New Israeli Shekel bills are seen in front of an upwards-trending graph (illustration)

Steep fall in mortgage taking in Israel in January

Compared with January 2024, mortgage taking was up 30% and up 15% from January 2023.

 Mortgage

War continues to slam Israel's economic stability, Bank of Israel says

Apartment prices continued to rise in the second half of 2024 after these price increases resumed in the first half of 2024.

New Israeli Shekels (illustrative).

Israel’s postwar economic recovery tempered by fragile ceasefire

Despite not having a national budget approved for 2025, a labor crisis, and a ceasefire that could collapse at any moment, Israel still shows signs of optimism.

Tel Aviv Stock Exchange (TASE)