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Israel's Central Bank to Go Slow on Rate Cuts, Says UBS

BY MT Newswires | ECONOMIC | 09/10/25 12:27 PM EDT

12:27 PM EDT, 09/10/2025 (MT Newswires) -- The Bank of Israel (BoI) lowered its 2025 gross domestic product to 3.3% from 3.5% in July on the back of a downward adjustment to private consumption and exports, noted UBS.

The bank calculates the first-round GDP impact of the 15% United States reciprocal tariffs at 0.4% of GDP.

Headline inflation fell to 3.1% year over year in July, but core rose back to 3.4% year over year. Rent (4.2% year over year) and airfares (10.8% year over year) are the key items to watch, noted UBS.

The bank sees scope for only up to one 25bps cut at the BoI -- more likely at the Nov. 24 when headline CPI is expected to be less than 3%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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