Bank of Israel holds interest rates steady a week before election

The ​Bank of Israel ​left short-term interest ‌rates unchanged ​on Wednesday after three successive cuts, opting for a ‌pause ahead of a general election next week despite stable inflation. The central bank as widely ‌expected held its benchmark rate at to ‌3.25%. It had cut rates last November and January before pausing due to the conflict with ⁠Iran ​and ⁠fears of a spike in supply-driven inflation. It then ⁠resumed cuts in May, July and September.

The annual ​inflation rate edged up to 1.6% in ⁠September - well within the bank's 1% to 3% ⁠target ​range - from 1.5% in August. All 15 economists polled by Reuters had expected no ⁠move on Wednesday, with some citing the election ⁠on ⁠October 27 and how it could impact Israeli policy toward Iran.