PrintUBS Previews News Week's Bank of Israel's Policy Meeting
BY MT Newswires | ECONOMIC | 08/15/25 08:28 AM EDT08:28 AM EDT, 08/15/2025 (MT Newswires) -- The Bank of Israel (BoI) is scheduled to hold its next policy meeting on Wednesday, noted UBS.
In July, Israel's central bank kept the policy rate at 4.50% and maintained a hawkish stance, citing elevated domestic and global uncertainty, a tight labor market and the risk of increased demand amid constrained supply conditions, while refraining from providing clear guidance on rate cuts.
Given the latest inflation data -- June at 3.3% year-over-year versus market expectations of 3.1% -- and the BoI's prudent tone in July, UBS expects easing to be considered only at the September or November meetings, contingent on incoming data and the evolution of security dynamics.
The BoI's cautious stance, combined with favorable interest
rate carry and broad US dollar weakness should support the
shekel (ISL), in the bank's view.
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