The prospects of the Iran-U.S. agreement are heating up, and the Israeli central bank is expected to restart interest rate cuts.

BlockBeats News, May 25 — As the United States and Iran seem to be gradually approaching an agreement to end the war, the Bank of Israel is expected to cut interest rates. According to a survey of 14 economists, 8 of them expect the Bank of Israel to lower the benchmark interest rate by 25 basis points to 3.75% on Monday.

Rafael Gozlan, Chief Economist at IBI Investment Company, said: "From the central bank's perspective, inflation remains stable around the midpoint of the target range (1.9%), and the significant appreciation of the shekel supports a slight rate cut. The next decision will depend on geopolitical developments. If there are no major escalations, we expect a rate cut; if the situation worsens, rates may remain unchanged."

Last Friday, the Israeli shekel closed at 2.9 shekels per US dollar, maintaining its strongest level in over thirty years, further reinforcing market expectations of moderate inflation in the future. According to a survey published by the Bank of Israel on May 19, the average inflation expectation for the next 12 months has decreased from 2.3% to 1.8%. Since the last interest rate decision by the Monetary Policy Committee at the end of March, the shekel has appreciated by 8%, with a total appreciation of nearly 24% over the past year. Other factors supporting a rate cut include the slow recovery of the Israeli economy from the war with Iran; even if an agreement is reached, economic growth is not expected to accelerate significantly.

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L2NightCourier
· 11h ago
The Middle East situation is like opening a blind box; the interest rate cut decision carries significant risk.
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KeyOnBlackVelvet
· 11h ago
Central Bank: First cut by 25 basis points to test the waters; if it doesn't work, then tighten again
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ContrarianIndicatorBonsai
· 11h ago
Rafael's words are flawless; whether to upgrade or not depends entirely on fate.
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TheTreeInTheCenterOfMistValley
· 11h ago
If the agreement falls through, this interest rate cut would just become a joke.
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StakingSparrow
· 11h ago
The strongest currency in thirty years, Israel's economy foundation is solid.
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RugpullTaster
· 11h ago
2.9 exchange rate is too stiff, exporters are going to cry
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BetaParanoiac
· 11h ago
8/14 Economists are betting on interest rate cuts, what are the remaining 6 waiting for?
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LateFeeLeo
· 11h ago
1.9% inflation is indeed comfortable, but is the peace treaty really secure?
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PixelMiningLamp
· 11h ago
When geopolitical tensions ease, the central bank immediately relaxes, a classic move.
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HotAirBalloonCrossingMountains
· 11h ago
Shekel's strongest in thirty years, rate cut expectations have arrived
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