Israel's Central Bank Cuts Key Rate by 25bps to 4.25%

BY MT Newswires | ECONOMIC | 11/24/25 11:01 AM EST

11:01 AM EST, 11/24/2025 (MT Newswires) -- Israel's central bank Monday said its Monetary Committee decided to lower the interest rate by 25bps to 4.25%

Annual inflation has moderated and stood at 2.5% in the past two readings, noted the central bank in its policy statement. Forecasters project that there will be some increase in inflation at the end of the year, and that it will then decline and stabilize around the midpoint of the target range.

Economic activity recovered sharply in Q3, it pointed out. Gross domestic product expanded at a rate of 12.4% in annual terms, but its level remains lower than its long-term trend.

The labor market remains "tight," according to the Bank of Israel.

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