Interest Rate

Following the Bank of Israel's interest rate decision that surprised markets, leading currencies have strengthened against the shekel. The chairman of Puria Finance analyzes the situation and provides a forecast for the medium and long term.

Money market funds yielded about 4% in the last year; the expected forward yield is about 3.25%. How to choose between funds, why it is important to check management fees, and what is better - a money market fund or a shekel deposit?

New inflation data in the eurozone may lead to a historic change in the Central Bank's policy. Here is how the emerging move will affect Israeli investors and the local currency exchange rate.

The shekel continues to weaken moderately following the Bank of Israel's interest rate cut. The local currency market is also being influenced by escalation on the Iranian front and global market trends.

Professor Amir Yaron explained the Bank of Israel's decision to lower the interest rate to 3.25%, noting it was made despite expected inflation growth. Regarding real estate, he added: "I would like to see contractors continue to lower prices." He emphasized that political pressure does not affect him: "The walls of the monetary committee room are very thick."

Since November 2025, the Bank of Israel has lowered the interest rate five times, resulting in a significant reduction in costs for mortgage borrowers. The new interest rate cut will take effect this coming Thursday.

Ongoing disinflation and the strength of the shekel, despite a sharp rise in fuel prices, have led the Monetary Committee to decide on a further reduction in the base interest rate.

The market assigns a probability of about 50% to an imminent cut, but an in-depth analysis of the global economy reveals why the Bank of Israel may wait and presents a surprising forecast for the dollar exchange rate.

The foreign exchange market shows a mixed trend as investors await the Bank of Israel's interest rate decision. Bank Hapoalim analysts warn that the window of opportunity for a rate cut may soon close.

Or Poriya, Chairman of Poriya Finance, points to the combination of geopolitical tension, pressure in the bond market, and expected interest rate decisions, warning: despite optimism in the AI sector, market volatility is expected to rise sharply.

The moderation of inflation and changes in the local labor market increase the probability of a significant step on Tuesday, while in the US a completely opposite trend is being recorded. Analysts at Leader Capital Markets provide their analysis.

The foreign exchange market is opening the week with a slight rise in the shekel against the dollar ahead of the Bank of Israel's interest rate decision. The dollar is down 0.2%, trading around 2.99 shekels.

Chief strategist Yoni Fanning analyzes the US Fed Chair's recent stance and explains how it may impact the potential for an interest rate cut in Israel.

The decline in inflation and the strong shekel support a third consecutive reduction the day after tomorrow. On the other hand, the increase in government spending and security uncertainty raise concerns that prices will start rising again, so the Bank of Israel may leave the interest rate unchanged at 3.5%.

Fed Chair Kevin Warsh is set to speak at the Jackson Hole conference. Investors are looking for clues on future monetary policy, though markets remain calm with the VIX volatility index trading below its annual average.

The Bank of Israel interest rate stands at 3.5%, deposits and money market funds still provide a decent return, but many mortgages cost 5% or more; on 200,000 shekels, the gap can reach thousands of shekels per year - and there are also considerations of tax, early repayment fees, and liquidity.

The moderation of inflation and the weakening of the US labor market are lowering the probability of a rate hike there in September. However, investors are still concerned and are pricing in the risk in long-term bonds. Now also in podcast version.

While real estate companies suffer from financing costs that weigh on them and erode entrepreneurial profit, the company took a loan of 22 million shekels at a prime plus 5% interest rate. At the same time, the company claims that thousands registered for a tender in which it marketed 400 apartments.

Ahead of the September 1st decision, amid geopolitical and budgetary risks, Harel experts assess the likelihood of an interest rate cut in Israel while analyzing global economic trends.

A new macroeconomic review reveals an unusual gap between the current interest rate and the state of the economy, indicating that at least two rate cuts are expected in the coming year, contrary to market estimates.

Following the US plan for the financial isolation of Iran, currency markets show minimal movement. The dollar is trading at 3.00 shekels as investors await the Bank of Israel's interest rate decision.

Bank of Israel data reveals gaps in interest rates and mortgage tracks between the major banks. Experts explain why the average interest rate is misleading, how banks profit from each track, and what really determines the best deal for the customer.

A credit deal looks like just another way to spread out a purchase, but in practice, it is an interest-bearing loan. At an average interest rate of about 13.2%, a purchase of 20,000 shekels can reach more than 24,300 shekels when spread over three years. The difference between "installments" and "credit" can be worth thousands of shekels.

The Bank of Israel is preparing for a fateful decision in the shadow of surprising data from the labor market and inflation, as senior economists now estimate the real chance of a revolution in the interest rate in the coming days.

The bank's chief strategist analyzes market turmoil and explains why rising energy prices and US policy decisions may prevent the Bank of Israel from cutting rates.

The foreign exchange market remains calm ahead of the Bank of Israel's interest rate decision and the Jackson Hole symposium. The dollar is trading above 2.98 shekels, while the euro is slightly below 3.49 shekels.

In an interview with Bloomberg, Bank of Israel Governor Amir Yaron tempered expectations for monetary easing on September 1, despite inflation falling to a five-year low. While a strong shekel and low indices support a rate cut, the central bank remains cautious due to various economic and geopolitical risks.

The local foreign exchange market remains calm following the shekel's recent retreat. Bank of Israel Governor Amir Yaron stated that an interest rate cut at the September 1 meeting is not guaranteed.

Bank of Israel Governor Professor Amir Yaron told Bloomberg that rising uncertainty makes a September interest rate cut uncertain. While praising strong growth data, the Governor emphasized the need for caution.

The strengthening of the shekel against the dollar may lead to an immediate interest rate cut in September, but economists warn that the move is nearing exhaustion and that inflation is expected to climb again towards the end of the current year.

Economists at the Psagot investment house warn that the downward trend in inflation has been exhausted and forecast the Bank of Israel's next steps regarding interest rates.

Leader Capital Markets estimates that inflation data and the strengthening of the shekel will allow for a significant policy move soon, despite a sharp drop in new apartment sales and an unusual decline in consumer confidence.

The share of the prime rate track in mortgages has almost doubled within a year, while the public is moving away from CPI-linked tracks. The choice reflects an expectation for continued interest rate cuts in Israel, but the global picture has changed: long-term bond yields are climbing, markets in the USA and Europe are pricing in the possibility of rate hikes, and further cuts by the Bank of...

The Consumer Price Index rose by 0.3% and annual inflation fell to 1.5%, but economists warn of a jump in the coming months that will determine the interest rate decision on September 1. This week: Mizrahi Tefahot concludes the banks' reports, and Azrieli reports. What do you need to know?

Trading in Tel Aviv will open this morning against the backdrop of forecasts for inflation to moderate to 1.4%. New records for the S&P 500 and Russell 2000. The dollar is correcting slightly against the shekel; oil is trading stably amid threats of a blockade on Iran. The US bond market is showing risk levels not seen since 2007. Bank of America raises the target price for a hot AI stock. Globes...

The S&P 500 set a new record as fears of an interest rate hike faded. Tel Aviv closed in the green led by earnings reports. Today: the Consumer Price Index, which will determine the interest rate direction. And in the background, the storm surrounding Bank Jerusalem. What do you need to know?

US annual inflation slowed to 3.4% in July, matching market expectations. The Consumer Price Index rose by 0.1% month-over-month.

The foreign exchange market is seeing moderate movements as investors await US inflation data. The dollar is strengthening by 0.1% to 3.004 shekels.

The Psagot investment house warns that the combination of a tight labor market and a rapid surge in wages will continue to fuel inflation and will directly affect the Bank of Israel's decisions in the coming years.

The employment report reveals an unexpected decline in the number of employed and a sharp slowdown in hiring. Economists estimate that the Fed's next move will directly affect the markets as early as this September.

According to Bank of Israel data, the average interest rate on deposits for six months to a year fell in July to 3.59%, compared to 3.94% in April. The gaps between banks are significant, and the interest rate on deposits ranges from 2.9% to 6%. While interest rate cuts are quickly rolling over to deposits, the decline in mortgages is more moderate.

The shekel shows a slight retreat at the start of inflation week. With CPI data due in the US on Wednesday and in Israel on Friday, markets are bracing for key indicators that will influence future central bank decisions.

Tomorrow, Monday will report under heavy pressure as the stock has plummeted about 37% this year, the company fired 20% of its staff and approved a generous compensation package for the CEOs. This week, the US Consumer Price Index will also be released, which may decide if the Fed will raise interest rates.

The shares of Israel's largest credit card company have lost about a third of their value since the beginning of 2026 and are trading below the price at which Yitzhak Tshuva's Delek Group acquired control. This week, the company is publishing its second-quarter reports. What is putting pressure on the stock, how are the Bank of Israel's interest rate cuts affecting it, and how much are Tshuva and...

The US labor market saw a surprise job loss in July, easing concerns over interest rate hikes and driving a 5% weekly gain for the Nasdaq. In Tel Aviv, the focus shifts to earnings reports from major banks, alongside companies like Camtek, Elbit, and Strauss.

The probability of a Federal Reserve interest rate hike in September has fallen to 43.9% following weak July employment data. The number of jobs decreased by 23,000, against an expected gain of 83,000.

Foreign exchange markets remain calm, with the dollar trading above 3.04 shekels and the euro above 3.50 shekels. Alex Zabezhinsky, chief economist at Meitav, argues that market forecasts for a Fed rate hike are exaggerated.

While the Bank of Israel interest rate is falling, mortgage rates are not adjusting accordingly. Banks are increasing interest margins, offsetting a significant portion of the economic rate cuts.

Economists at Psagot Investment House analyzed the impact of the US-Iran escalation on the shekel and energy prices. Experts project two interest rate cuts by the Bank of Israel over the next 12 months.

Mortgage refinancing is the process of replacing an existing loan with a new one under better terms. Given the recent decline in interest rates, experts advise borrowers to review their current mortgage agreements.