PrintBank of Israel cuts key rate by 25 bps after Gaza ceasefire
BY Reuters | ECONOMIC | 11/24/25 09:01 AM ESTJERUSALEM, Nov 24 (Reuters) - The Bank of Israel lowered short-term interest rates by a quarter-point on Monday, its first reduction in nearly two years, as a ceasefire in Gaza led to easing inflation and reduced geopolitical risk.
The cut in the benchmark rate to 4.25% from 4.5%, widely expected by analysts and financial markets, came after other global central banks had already begun to ease monetary policy and last month's U.S.-brokered ceaesefire between Israel and Palestinian militant group Hamas took hold.
The monetary committee lowered the key rate by a quarter-point in January 2024 at the outset of the Gaza war but has taken a conservative stance on rates since then, opting for caution during the two-year conflict while price pressures rose, largely due to supply constraints.
But Israel's inflation rate has eased, and held steady at a 2.5% rate in October to stay within an official 1-3% annual target range. (Reporting by Steven Scheer; Editing by Toby Chopra)
