Bank of Israel​

Governor of the Bank of Israel Prof. Amir Yaron and members of the Bank of Israel Monetary Committee today held a meeting with the group of forecasters that regularly provides the Bank of Israel with forecasts for inflation, the interest rate, and the exchange rate. The meeting provides an opportunity for exchanging opinions and assessments between the Bank of Israel and leading financial institutions in the economy.

In the first quarter of the year, the growth of demand for credit among micro and small businesses moderated, with an expectation of increased demand in the next quarter.

Remarks by the Governor of the Bank of Israel at the press briefing on monetary policy held today at the Bank of Israel

The Monetary Committee decides on April 7, 2025 to leave the interest rate unchanged at 4.5 percent.

This document presents the macroeconomic staff forecast formulated by the Bank of Israel Research Department in April 2025 concerning the main macroeconomic variables—GDP, inflation, and the interest rate.[1] According to the forecast’s baseline scenario, GDP is expected to grow by 3.5 percent in 2025, and by 4.0 percent in 2026.  The inflation rate in the coming four quarters (ending in the first quarter of 2026) is expected to be 2.5 percent, inflation in 2025 is expected to be 2.6 percent, and inflation in 2026 is expected to be 2.2 percent.  The average interest rate in the first quarter of 2026 is expected to be 4.0 percent.