Bank of Israel holds interest rates steady a week before election
TLT•The Bank of Israel held its benchmark interest rate at 3.25% after three successive cuts, one week before a general election. September inflation edged up to 1.6%, within the bank’s 1% to 3% target range.
1. Rate decision
The Bank of Israel kept its benchmark rate at 3.25% on Wednesday, pausing after rate cuts in May, July and September. The decision came ahead of a general election scheduled for October 27.
2. Inflation and expectations
Annual inflation rose to 1.6% in September from 1.5% in August, remaining within the central bank’s 1% to 3% target range. All 15 economists polled expected the bank to hold rates; some cited the election and its potential impact on Israeli policy toward Iran.
