The central bank of Israel left its benchmark interest rate unchanged at 0.1 percent on October 22nd 2020, in line with expectations. However, the bank increased the government-bond purchase program by ILS 35 billion, aiming to continue to support financing ability in the economy, amid the strengthening of the coronavirus crisis and its economic effects. In March, the central bank launched an ILS 50 billion programme to buy government bonds on the secondary market, with the goal of easing credit terms in the economy and support economic activity and financial stability.

Interest Rate in Israel averaged 5.27 percent from 1996 until 2020, reaching an all time high of 17 percent in June of 1996 and a record low of 0.10 percent in March of 2015. This page provides - Israel Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Israel Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020.

Interest Rate in Israel is expected to be 0.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Israel to stand at 0.10 in 12 months time. In the long-term, the Israel Interest Rate is projected to trend around 0.10 percent in 2021 and 0.50 percent in 2022, according to our econometric models.

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Israel Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.10 0.10 17.00 0.10 1996 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-05-25 01:00 PM 0.1% 0.10% 0.10% 0.10%
2020-07-06 01:00 PM 0.1% 0.10% 0.10% 0.10%
2020-08-24 01:00 PM 0.10% 0.10% 0.10% 0.10%
2020-10-22 01:00 PM 0.1% 0.10% 0.10% 0.10%
2020-11-30 02:00 PM 0.1% 0.1%


News Stream
Israel Increases Asset-Purchase Program
The central bank of Israel left its benchmark interest rate unchanged at 0.1 percent on October 22nd 2020, in line with expectations. However, the bank increased the government-bond purchase program by ILS 35 billion, aiming to continue to support financing ability in the economy, amid the strengthening of the coronavirus crisis and its economic effects. In March, the central bank launched an ILS 50 billion programme to buy government bonds on the secondary market, with the goal of easing credit terms in the economy and support economic activity and financial stability.
2020-10-22
Bank of Israel Holds Key Policy Rate at 0.1%
The Bank of Israel held its benchmark interest rate at 0.1 percent during its August meeting, saying inflation expectations for the coming year remained below the lower bound of the target range, while the Covid-19 pandemic continued to leave its mark on the economy. According to the latest forecasts by the central bank GDP is expected to contract by 4.5 percent in 2020 and to grow by 6 percent in 2021 if the virus is contained. In the more severe scenario, in which there is only partial control of the pandemic, accompanied by a further deterioration in the global situation, the economy is seen contracting by 7 percent, before rebounding by only 3 percent in 2021. The debt to GDP ratio in 2021 is expected to hit 78 percent in the optimistic scenario, or 87 percent under the pessimistic scenario.
2020-08-24
Israel Expands Monetary Policy Tools
The central bank of Israel left its key interest rate steady at 0.1 percent on July 6th 2020, in line with market expectations but decided to add new monetary policy tools to support the economic recovery amid an increase in the number of new COVID-19 cases in recent weeks and assure the continued orderly functioning of the financial markets. The central bank launched for the first time an ILS 15 billion program for purchasing corporate bonds in the secondary market; renewed the program which increases the supply of credit to small and micro businesses; and created an infrastructure for increasing the variety of assets that the banks can provide as collateral against this program.
2020-07-06
Israel Leaves Rates Steady
The central bank of Israel left its key interest rate steady at 0.1 percent on May 25th 2020, in line with market expectations and following a 15bps cut in the previous meeting. Policymakers said the coronavirus crisis has led to an unprecedented contraction in the scope of economic activity and to a steep increase in the number of jobseekers. Under the assumption there won’t be an additional wave of infections and a renewed increase in the severity of the limitations, after a marked contraction in 2020, GDP growth will recover rapidly in 2021, but the unemployment rate at the end of 2021 will be higher than what it was just prior to the crisis. The central bank added that will expand the use of the existing tools, including the interest rate, and will operate additional ones if the crisis is lengthening and it is necessary to achieve the monetary policy goals and to moderate the negative economic impact created as a result of the crisis.
2020-05-25

Israel Interest Rate
In Israel, the interest rates decisions are taken by the Bank of Israel. The official interest rate is the "headline" rate.