Israel interest rate
Bank of Israel
- Policy rate
- 3.50%
- Jul 2026
- Last move
- −0.25 pt
- Jul 2026
- Inflation
- 1.5%
- Aug 2026
- 10-year bond yield
- 3.93%
- Aug 2026
The policy rate set by the Bank of Israel is 3.50% as of Jul 2026. Its most recent move: it cut its rate from 3.75% to 3.50% (Jul 2026). The rate is 1.00 percentage points lower than a year earlier. With consumer prices up 1.5% over the 12 months to Aug 2026, the real rate (policy rate minus inflation) is +2.0%: borrowing costs are above inflation.
Policy rate over the past two years
Jul 2026: 3.50%
Rate changes
| When | Decision | From | To | Change |
|---|---|---|---|---|
| Jul 2026 | Cut | 3.75% | 3.50% | −0.25 pt |
| May 2026 | Cut | 4.00% | 3.75% | −0.25 pt |
| Jan 2026 | Cut | 4.25% | 4.00% | −0.25 pt |
| Nov 2025 | Cut | 4.50% | 4.25% | −0.25 pt |
Changes between month-end rates. Two decisions in one month show up as a single change.
Inflation (% vs a year earlier)
Aug 2026: 1.5%
10-year government bond yield
Aug 2026: 3.93%
Other central banks in Asia
Source: BIS; inflation: IMF CPI; bond yield: OECD. Updated daily. All central bank rates · Israel economy dashboard