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Israel's Central Bank Leaves Interest Rate Unchanged at 4.50% Amid Uncertainty From Gaza Fighting

BY MT Newswires | ECONOMIC | 09/29/25 11:16 AM EDT

11:16 AM EDT, 09/29/2025 (MT Newswires) -- Israel's central bank (BoI) Monday said its Monetary Committee decided to leave the interest rate unchanged at 4.50%.

"In view of the intensification of the fighting in Gaza and a deterioration in international sentiment toward Israel, uncertainty in the geopolitical environment is high," wrote BoI in its policy statement explaining why it kept the rate on hold.

According to the BoI's Research Department staff forecast assessment, under the assumption that the fighting in Gaza continues at varying intensity and ends during Q1 2026, the gross domestic product is expected to grow by 2.5% this year and by 4.7% in 2026, and the inflation rate is expected to be 3% this year and 2.2% in 2026.

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