JERUSALEM, May 25 (Xinhua) -- Israel's central bank on Monday cut its benchmark interest rate by 25 basis points to 3.75 percent.
This marks the third time the bank made such a move since November 2025, after it held the rate steady at 4.5 percent for nearly two years.
The bank attributed the latest rate cut to low inflation, which remains within the government's 1-3 percent target range.
It said the Israeli currency shekel has strengthened significantly, appreciating by 8.3 percent against the U.S. dollar and 7.2 percent against the euro since the bank's previous rate decision in March.
Current indicators of economic activity point to recovery following the war with Iran, but geopolitical uncertainty remains significant, it said.
The rate cut was met with immediate criticism from the Manufacturers Association of Israel, which called it "detached from reality" and harmful to exporters, industry and the hi-tech sector. ■
