A REUTERS SURVEY showed most economists expect the Bank of Israel's MPC to pause
rate cuts on Tuesday, though 6 of 14 users forecast a further 25bp
reduction to 3.25%. The MPC cut rates by 25bp in May and July; the policy rate
is currently 3.5%, its lowest since end-2022. Annual inflation is 1.5%—inside
the 1–3% target band—and a stronger shekel is seen as easing price pressures.
Bond-market-implied inflation over the next year is priced to remain stable.
