Bank of Israel Makes Surprise Rate Cut as Inflation Moderates and Shekel Gains

The Bank of Israel building is seen in Jerusalem, June 16, 2020. Photo: REUTERS/Ronen Zvulun

The Bank of Israel unexpectedly cut its interest rate by 25 basis points on Monday, a second successive cut after lowering it in November for the first time in nearly two years, citing an improving inflation environment after the Gaza ceasefire.

The benchmark short-term rate was reduced to 4.00% from 4.25%.

Bank of Israel Governor Amir Yaron said that despite the two cuts in a row...