Israel’s central bank is set to hold interest rates for a 12th consecutive time, with policymakers waiting to see if the shekel’s recent rally helps tame inflation and paves the way for a cut.
A ceasefire with Iran announced by President Donald Trump last month — halting Israeli and US strikes on the Islamic Republic’s military and nuclear programs — drove a rally in the shekel. Last week, the currency was at its strongest against the dollar in three years, erasing drops following Prime Minister Benjamin Netanyahu’s judicial overhaul attempts and Hamas’ Oct. 7 attacks which triggered a 21-month war.