Policy rate in Israel

Banco de Israel · Mensual

3.50% (9 Jul) ABS · % · Diario · CSV

About this indicator

Source	Bank of Israel
Frequency	Mensual
Release	En las fechas de las reuniones de política monetaria del banco central.
What it is	The official interest rate set by the Bank of Israel (BoI). It is the reference rate for the shekel and Israel's main monetary policy instrument.
How it's calculated	It is not a statistical figure: it is decided by the Bank of Israel's Monetary Committee at its regular meetings, in line with its 1%-3% inflation target and the economic outlook. Quoted as an annual percentage.
Market implications	Changes feed through to market rates, credit and the shekel (ILS) exchange rate. A hike or hawkish tone tends to strengthen the shekel and rein in inflation; a cut cheapens credit to support activity.
Limitations	It only moves on decision dates (a step function) and its effects arrive with long, variable lags. In Israel, geopolitical tensions and FX intervention shape policy as much as the rate itself.