PrintBank of Israel keeps rates steady amid Iran tensions
BY Reuters | ECONOMIC | 02/23/26 09:02 AM ESTJERUSALEM, Feb 23 (Reuters) - The Bank of Israel held short-term interest rates steady on Monday ?after two successive cuts, amid ?fears of a U.S. strike on ?Iran that overshadowed easing inflation pressures and ?a strong shekel.
After cuts ?in ?November and January, the central bank opted to ?leave its benchmark ?rate at 4% despite an October U.S.-brokered ceaesefire between ?Israel and Palestinian ?militant group ?Hamas took hold and helped to relieve supply constraints that had ?pushed up prices during the ?two-year Gaza war.
The annual inflation rate eased to a 4-1/2-year low of 1.8% in January - ?well ?within an official target ?range of 1-3% - from 2.6% in ?December.
Of the 13 economists polled by Reuters, seven had expected a rate cut while six projected no move due to worries over a possible ?U.S. attack on Iran, which would likely prompt Iranian retaliation on ?Israel. (Reporting by ?Steven Scheer; Editing by ?Toby Chopra)
