Full coverage· Economy· Updated 20 Oct, 10:30

Bank of Israel's Election-Eve Rate Decisions: A Historical Perspective

The Bank of Israel will announce its interest rate decision six days before the upcoming Knesset elections, with markets expecting it to remain at 3.25%. Historically, the bank has adjusted rates before elections, with both hikes and cuts occurring.

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Bank of Israel's Election-Eve Rate Decisions: A Historical Perspective — Illustration by baba

What happened

01Bank of Israel to announce interest rate decision six days before Knesset elections.
02Markets expect the rate to remain at 3.25% despite lower September inflation.
03Historical data shows Bank of Israel has adjusted rates before elections.
04Israel's inflation is low at 1.6%, but global factors like US inflation add complexity.
05Previous rate decisions before elections varied, including hikes and cuts.

While Israel's inflation is low, global economic factors, particularly rising inflation in the US, create uncertainty. The decision will weigh the recent lower-than-expected Israeli inflation against international risks.

Translated and summarized by baba from Globes, the latest report. Read Globes’s original