By Pesach Benson • September 1, 2026
Jerusalem, 1 September, 2026 (TPS-IL) — The Bank of Israel on Tuesday lowered its interest rate by 0.25 percentage points to 3.25%, the third consecutive cut, citing moderating inflation, now at 1.5%, within the bank’s target range.
The reduction is expected to lower borrowing costs, with the monthly payment on an average mortgage projected to fall by about NIS 65 ($21).
The latest cut follows reductions in May and August, after the central bank kept rates unchanged at 4% earlier this year amid economic uncertainty.
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