Israel Set to Hold Rates as War Pressures Delay Easing Cycle
- Government spending soars as multi-front conflict intensifies
- The shekel is one of the world’s worst performers since August
An Israeli tank drives near the border with Gaza in Southern Israel.
Photographer: Amir Levy/Getty ImagesThis article is for subscribers only.
Israel’s central bank is set to hold interest rates for a sixth consecutive meeting, unable to join a global easing cycle as conflicts in Gaza and Lebanon increase inflationary pressures.
The Bank of Israel will hold its base rate at 4.5% on Wednesday, according to all 16 analysts surveyed by Bloomberg. Speaking at a conference last week, Governor Amir Yaron said cuts are unlikely before the second half of 2025, despite the economy slowing as war hits industries from tourism to agriculture and construction.