Bank of Israel Holds Benchmark Rate at 3.25% Ahead of October 27 Election

The Bank of Israel left its benchmark short-term interest rate unchanged at 3.25% on Wednesday, pausing after three successive cuts and opting to wait until after next week's general election despite stable inflation. All 15 economists polled by Reuters had expected no move, with some citing the October 27 election and how it could affect Israeli policy toward Iran. The central bank had cut rates last November and January before pausing amid the conflict with Iran and fears of supply-driven inflation, then resumed cuts in May, July and September. The annual inflation rate edged up to 1.6% in September from 1.5% in August, remaining well within the bank's 1% to 3% target range.