Bank of Israel Unexpectedly Cuts Interest Rate to Record

The Bank of Israel unexpectedly cut its benchmark interest rate for a second straight month to a record, in an attempt to boost an economy hit by slowing exports and the seven-week war in Gaza.

The shekel weakened and stocks in Tel Aviv climbed after the Monetary Policy Committee, led by Governor Karnit Flug, reduced the rate by a quarter of a percentage point to 0.25 percent. All 21 economists in a Bloomberg survey had expected the panel to keep the rate unchanged after last month’s surprise reduction.