Bank of Israel holds at 3.25% and next meets on November 23

The Bank of Israel's own website shows the Monetary Committee decided on October 21, 2026 to leave the rate unchanged at 3.25%. The next decision is scheduled for Monday, November 23. That puts a hold at the next meeting as the most plausible outcome, only a month after the last one. The committee's recent reasoning supports patience. Governor Amir Yaron said, according to a Japanese trade agency's summary, that inflation is slightly below the midpoint of the 1 to 3 percent target range. He also said activity continues to grow and the labour market remains tight. September CPI was 1.6 percent year on year. Geopolitical uncertainty remains high. The Bank's research department forecast, published October 21, points to gradual easing rather than a sudden move. It projects an average policy rate of 3.0 percent in the third quarter of 2027, and inflation of 2.1 percent in the fourth quarter of 2027. The bank had cut three times this year before October's pause, as reported on October 30. A report on the October decision said the hold matched expectations. The main risk is a fresh shock. Israel's election on Tuesday, October 27 left Netanyahu's bloc without a majority, according to reports. One report said the dollar jumped and the stock exchange fell on the results. A sustained financial-market reaction could push the committee off its cautious path, though the supplied evidence does not show that it has. Watch the shekel and Israeli markets over the coming weeks. A disorderly move after coalition talks begin would be the likeliest thing to turn a hold into a cut or a rise.