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Israel lowers interest rate as conflict weighs on economic outlook

May 29, 2026

The Bank of Israel decided to lower interest rates to 3.75% on May 25, signaling cooling inflation, a strong shekel and optimism at a deal to end the war with Iran. The central bank cut borrowing costs from 4% to 3.75% in its second rate cut of the year. 

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26 May 2026

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