The Monetary Committee of the Bank of Israel decided on 30 March 2026 to leave the interest rate unchanged at 4.00%, citing geopolitical uncertainty linked to the war with Iran and a sharp rise in global energy prices. The decision, supported by all members of the Monetary Committee, was the second consecutive hold following the committee's cut in January 2026.
The committee's discussions noted that the price of a barrel of Brent crude oil had risen sharply, to approximately $113, an increase of about 60 percent, and that European natural gas prices had risen by about 70 percent. Annual CPI inflation stood at 2.0 percent.
GROWTH FORECAST CUT
The Bank of Israel's Research Department lowered its 2026 GDP growth forecast to 3.8 percent, from 5.2 percent in its January forecast.
JANUARY CUT AND THE PATH AHEAD
The Bank of Israel's January 2026 rate cut, to 4.00%, followed an initial reduction in November 2025. The committee then held the rate at 4.00% on 23 February, also unanimously.
The next monetary policy decision is scheduled for 25 May 2026. The committee said the interest rate path would be determined in accordance with the development of inflation, economic activity, geopolitical uncertainty and fiscal developments.
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