The Central Bank decided to reduce the base interest rate by 0.25 percentage points, from 3.75 percent to 3.5 percent, a decision that was in line with market expectations.
The Bank of Israel began the rate-cutting cycle in November and January, before suspending it in two successive meetings due to the repercussions of the conflict with Iran and fears that inflation would return to a rise, then it resumed the course of monetary easing in May.
The decision comes at a time when inflation continues to stabilize within the target range, as the annual inflation rate reached 1.9 percent in May, which is within the target set by the Central Bank between 1 and 3 percent, which provided a margin to continue reducing interest rates in support of economic activity.
