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Israel raises interest rates in eighth consecutive hike in 10 months

Fighting rising inflation, Bank of Israel Gov. Amir Yaron took the unpopular decision of increasing the interest rates to 4.25%.
New banknotes of Israel background.

TEL AVIV — The Monetary Committee of the Bank of Israel raised interest rates by 0.5% on Monday. The decision by Bank of Israel Gov. Amir Yaron marked the eighth consecutive hike since April 2022, bringing it to 4.25% — the highest level since 2008.

The rate hike reflects the bank’s deep concern over the risk posed by rising inflation — now at a 20-year high of 5.4% — to Israel’s economy.

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