Part of Global Central Bank Rates on BankofCanadaOdds.com.
Bank of Israel Interest Rate
- Last updated: — policy rate data and historical series refreshed automatically each day.
The Bank of Israel interest rate is the central bank’s main policy tool for steering financial conditions in Israel. Changes in the policy rate can influence short-term market rates, bank funding costs, borrowing conditions, and inflation expectations across the economy.
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Note: The Bank of Israel Interest Rate is the headline interest rate set by the Monetary Committee. It is the primary tool used to manage liquidity in the banking system, maintain price stability, and keep inflation within the government’s target range of 1–3%.
What is the Bank of Israel interest rate?
The Bank of Israel interest rate is the benchmark policy rate used to guide short-term monetary conditions. It helps transmit policy into money markets and the banking system, influencing borrowing and saving rates over time.
Who decides the rate and what they’re trying to achieve?
The Monetary Committee sets the Bank of Israel interest rate. Israel operates an inflation targeting framework where price stability is defined by a 1% to 3% annual inflation range, established by government decision and used as the anchor for monetary policy.
Why track global policy rates?
Currency movements
Policy-rate differences between countries can drive capital flows, influencing exchange rates as investors seek higher expected returns.
Credit and funding conditions
Central bank rates affect short-term funding costs, which feed through to loans, bonds, and broader credit markets.
Market valuation cycles
Shifts in policy rates change discount rates and growth expectations, influencing equities, housing markets, and commodity prices.
Why this matters for Canadians
Bank of Israel decisions can influence global risk sentiment and currency markets. During periods of geopolitical stress, markets often reprice risk quickly, which can spill into broader financial conditions that shape expectations for the Bank of Canada path.
Related Israeli benchmark rates
Bank of Israel interest rate announcements
The Bank of Israel publishes a calendar of scheduled interest rate announcement dates, helping markets track when policy decisions and updated guidance may be released.
- Frequently Asked Questions
Central Bank Rates
FAQs
It is the central bank’s benchmark policy rate used to guide short-term monetary conditions in Israel.
The Monetary Committee of the Bank of Israel sets the interest rate as part of monetary policy decisions.
Price stability is defined as inflation within a 1% to 3% annual range.
The Bank of Israel publishes a schedule of interest rate announcement dates (times and dates can change).
No. Mortgage and loan rates are market-determined, but they are influenced by policy rates through funding costs and expectations.
Interest rate differentials can alter capital flows and investor demand for shekel-denominated assets.
Markets weighed inflation trends alongside geopolitical risk, which can affect policy decisions and the outlook for growth and financial stability.
Some sources show announcement dates, others use effective dates or liquidity-period conventions. Using a consistent definition avoids confusion.
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