The Bank of Israel has taken a decisive step in adjusting its monetary policy by lowering interest rates to 4.25% from the previous 4.50%. This change, announced in November 2025, marks the first rate cut since the previous decision in September 2025.
The decision to reduce rates comes as the central bank aims to stimulate economic activity and address emerging challenges within the national economy. With the prior rate standing firm at 4.50% for two months, the adjustment to 4.25% reveals a strategic shift aimed at fostering growth and supporting various sectors potentially impacted by recent economic fluctuations.
The November rate cut underscores the Bank of Israel's responsive approach to evolving economic conditions. As updated data on November 24, 2025, indicates, this move is expected to influence borrowing costs, potentially benefiting businesses and consumers seeking to capitalize on more favorable credit terms. The rate adjustment also aligns with global monetary trends, where central banks navigate the delicate balance between stimulating growth and controlling inflation pressures.
