Capital Market

The Bank of Israel announced today it is leaving the benchmark interest rate unchanged at 4.5%, in line with market expectations. The decision comes after a week packed with critical economic data, including July’s Consumer Price Index (CPI) and second-quarter GDP figures, both of which painted a mixed picture of the Israeli economy

Israel's government deficit narrowed slightly in August, reaching 4.7% of GDP, or approximately NIS 98 billion, according to data released by the Ministry of Finance. This marks a modest improvement from 4.8% in July and 5% in June

The Consumer Price Index (CPI) in Israel rose by 0.7% in August 2025 compared to July, according to data released by the Central Bureau of Statistics. Over the past 12 months (August 2024 to August 2025), inflation stood at 2.9%, within the Bank of Israel’s target range (1%–3%), but still reflecting ongoing pressures on the cost of living