Bank of Israel Expected to Hold Rates at 3.25% Ahead of October 27 Election

Israel's central bank is expected to keep its benchmark interest rate at a four-year low of 3.25% on Wednesday, pausing after three consecutive cuts as policymakers weigh next week's October 27 election, according to a Reuters poll of 15 economists. The bank has cut rates five times by 25 basis points since its easing cycle began last November, with inflation at 1.6% in September, within the government's 1%-3% target. The economy grew 15.4% annualized in the second quarter, while the shekel has weakened to a nine-month low against the dollar. Barclays cited political uncertainty as a reason for a hold. Citi economist Michel Nies said the November meeting, after elections and with another low inflation print expected, "might present itself as a good opportunity" for a cut to 3%. Governor Amir Yaron will hold a news conference at 1315 GMT alongside the bank's quarterly macroeconomic estimates.