Israel interest rates

Bank of Israel Governor Amir Yaron speaks during a press conference at the Bank of Israel in Jerusalem, on January 7, 2019. (Noam Revkin Fenton/Flash90)

Bank of Israel head urges lenders to pay fair interest on deposits, current accounts

Central bank chief instructs banks to fully pass on interest rates to deposit holders and come up with a plan to pay interest on the billions of shekels sitting in current accounts

June 20, 2023, 5:08 pm

Bank of Israel head urges lenders to pay fair interest on deposits, current accounts

Central bank chief instructs banks to fully pass on interest rates to deposit holders and come up with a plan to pay interest on the billions of shekels sitting in current accounts

By Sharon Wrobel

A man shops for groceries at a Rami Levy supermarket in Jerusalem on February 3, 2022. (Yonatan Sindel/Flash90)

June 15, 2023, 9:48 pm

Israeli inflation lower than forecast in May, boosting odds of rate hike pause

Consumer price index surprises with lower-than-expected monthly figure of 0.2% versus analysts’ expectations of 0.5%-0.6%

By Sharon Wrobel

The Tel Aviv Stock Exchange, in the center of Tel Aviv, December 25, 2018. (Adam Shuldman/Flash90)

June 7, 2023, 7:00 pm

Shekel returns to gains amid cautious market optimism over judicial compromise bid

Recent comments by government representatives and selection process of judicial panel bring some confidence back to Israeli markets, erasing most of the losses of the past 2 weeks

By Sharon Wrobel

A illustrative view from Mount Carmel of the Haifa port and the Mediterranean Sea, January 2021. (Svarshik via iStock by Getty Images)

June 7, 2023, 10:05 am

OECD projects more moderate growth for Israel, citing judicial overhaul tensions risk

International economic organization slightly lowers Israeli GDP forecast to 2.9% in 2023 and 3.3% in 2024, notes underperformance of shekel and local stock market

By Sharon Wrobel

Finance Minister Bezalel Smotrich speaks at the Israel Democracy Institute (IDI) conference in Jerusalem, May 30, 2023. (Michal Fattal)

May 30, 2023, 7:54 pm

Smotrich seeks to tax banks’ fat profits from steady interest rate hikes

Bank of Israel head urges local banks to improve services by actively offering interest-bearing deposits to their customers; hints at further rate increases

By Sharon Wrobel

View of the Tel Aviv Stock Exchange on November 29, 2020. (Miriam Alster/ Flash90/ File)

May 29, 2023, 10:16 pm

Renewed market concern over judicial overhaul weakens shekel, keeps rates high

Continued shekel weakness is expected to make imported goods, including food and travel abroad, more expensive; economists see borrowing costs rising to 5% in coming months

By Sharon Wrobel

A branch of Bank Leumi in central Jerusalem (Maxim Dinshtein/Flash90)

May 23, 2023, 3:14 pm

Bank Leumi earns NIS 981m in 1st quarter, down 39%, after US bank value writedown

Net interest income jumps 36% to NIS 3.9 billion in the first quarter of 2023 from last year’s Q1; bank announces dividend, share buyback

By Sharon Wrobel

Bank of Israel Governor Amir Yaron speaks during a press conference at the Bank of Israel in Jerusalem, January 2, 2023. (Yonatan Sindel/Flash90)

May 22, 2023, 7:15 pm

As inflation persists, Bank of Israel hikes interest rates for 10th time, to 4.75%

Central bank lifts borrowing costs by 25 basis points, citing inflation above 5% and a tight labor market; sees signs of moderation in economic activity

By Sharon Wrobel

View of the Bank Hapoalim offices in the center of Tel Aviv. August 4, 2015. (Miriam Alster/Flash90)

May 22, 2023, 2:06 pm

Bank Hapoalim posts NIS 2.01b quarterly profit fueled by 49% jump in interest income

Net profit surges 21.3%, prompting bank to raise dividend payout 10 percentage points to 40% of quarterly profit as it benefits from steady interest rate hikes over past year

By Sharon Wrobel

UTJ MK and Deputy Knesset Speaker Yisrael Eichler (right) during a vote in the Knesset, in Jerusalem, on December 28, 2022. (Olivier Fitoussi/Flash90)

May 22, 2023, 12:33 pm

UTJ MK: ‘The government is not in our hands,’ Bank of Israel chief should quit

Yisrael Eichler says government power rests in hands of deep state and bureaucrats, who he compares to Russia’s Putin; blasts failure of interest rate hikes to bring down inflation

By ToI Staff

A shopping cart at the Rami Levy supermarket in Modiin on July 21, 2022. (Yossi Aloni/Flash90)

May 15, 2023, 10:02 pm

Israel consumer price index surprises with higher-than-expected April figure up 0.8%

Rise of almost double the forecast sets up Bank of Israel for another interest rate hike next week, as central bank battles inflationary pressure, economists say

By Sharon Wrobel

Foreign Minister Eli Cohen at a ceremony in the Ministry of Foreign Affairs in Jerusalem, January 2, 2023. (Olivier Fitoussi/ Flash90)

April 24, 2023, 5:23 am

Foreign minister lauds expansion of Israeli diplomatic clout into Eurasia region

In ToI interview, Eli Cohen talks up Israel’s recent diplomatic achievements, defends Azerbaijan arms sales, and says he wants another year in office despite deal with Israel Katz

By Tal Schneider

The new 100 Israeli Shekel bill, December 31, 2017. (Nati Shohat/Flash90)

April 12, 2023, 6:57 pm

Shekel continues to decline, hits two-year low against the euro

Currency currently trading at 3.68 to the dollar and 4.02 to the euro, ahead of Moody’s country credit rating update on Friday

By ToI Staff

Bank of Israel Governor Amir Yaron attends a cabinet meeting at the Prime Minister's Office in Jerusalem, on February 23, 2023. (RONEN ZVULUN / POOL / AFP)

April 3, 2023, 7:34 pm

Bank of Israel hikes rate to 4.5%, warns judicial shakeup could badly harm economy

Central bank lifts rates by 0.25%, smallest rise since April; in its pessimistic scenario, potential impact of overhaul could be $14-billion annual hit to GDP over next 3 years

By Sharon Wrobel

Illustrative: People shop at the Jerusalem Mahane Yehuda market, during the Jewish holiday of Passover, April 19, 2022. (Yonatan Sindel/Flash90)

March 15, 2023, 9:58 pm

Israeli inflation higher than forecast in February, boosting odds of more rate hikes

Rise of consumer prices over past 12 months eased to 5.2% in February versus expectations of 5%; Bank of Israel governor signals interest rates will climb higher still

By Sharon Wrobel