The Bank of Israel kept its policy interest rate at 3.25% on 21 October 2026. The decision leaves the central bank’s benchmark unchanged; it is not a new reduction in household or business borrowing rates.
The bank reported annual inflation of 1.6% in September. Its statement said the future rate path would depend on inflation, economic activity, uncertainty and fiscal developments, rather than committing to a preset series of cuts or increases.
The decision and the next dates
| Item | Verified detail |
|---|---|
| Policy rate | 3.25%; unchanged. Source |
| Inflation observation | 1.6% in the 12 months to September 2026; this is a historical reading, not a forecast. Source |
| Decision minutes | Scheduled for 4 November 2026. Source |
| Next rate decision | Scheduled for 23 November 2026; no outcome announced in this decision. Source |
What a hold does—and does not—mean
A policy-rate decision and a customer’s loan rate are different things. Readers should check their own contract’s benchmark, lender margin and reset date before assuming a change to repayments. The central bank’s announcement does not establish an identical rate for every loan or deposit.
Likewise, an annual inflation reading measures the change over the previous 12 months. It does not mean all individual prices rose by that percentage, or guarantee the next month’s inflation rate.
What to watch
The next useful evidence will be the published minutes and subsequent inflation and activity releases. This report does not predict an exchange-rate or equity-market reaction. For another example of the distinction between headline inflation and its components, see CapKet’s euro-area inflation report.
Official evidence and scope
Bank of Israel official document · Official decision page (page observed 2026-10-22T06:25:11.227Z; the archived PDF was checked separately). Source observed at 2026-10-22T06:19:40.347Z. This is an AI-assisted primary-document check, not independent human editorial approval. It is not investment advice.
Recorded source observation: . This is a source-check timestamp, not a market quote or a new article update.