The Central Bank of Israel has kept the interest rate unchanged for 11 consecutive times.

On May 26, the Bank of Israel announced on Monday that it would maintain the benchmark interest rate at 4.5%, keeping the interest rate unchanged for the 11th consecutive time, and maintained a wait-and-see attitude against the backdrop of the escalation of military operations in Gaza and rising inflation. The decision was in line with the expectations of all 12 analysts surveyed. The Bank of Israel made the decision despite the fact that the annual inflation rate deviated further from the 1%-3% target range set by the central bank. With the exception of sales tax hikes, which pushed inflation higher in January, inflation reached its highest level in eight months in April, rising to 3.6% year-on-year from 3.3% in March. Bank of Israel Governor Amir Yaron has previously said that the central bank could start cutting interest rates in the second half of the year if inflation slows and market risk premiums remain manageable.