JERUSALEM, July 6 (Xinhua) -- Israel's central bank on Monday lowered its benchmark interest rate by 25 basis points to 3.5 percent, the lowest level in more than three and a half years.
The move marked the fourth rate cut since November 2025, following a nearly two-year period during which the benchmark rate remained unchanged at 4.5 percent.
In a statement, the central bank said the latest rate cut was driven by low inflation, which stood at 1.9 percent, close to the midpoint of the government's target range of 1 to 3 percent.
It added that the recent memorandum of understanding between the United States and Iran had helped ease global geopolitical tensions and lower energy prices.
According to the bank, current economic indicators point to a continued recovery in activity following the sharp downturn triggered by the U.S.-Israel-Iran war. ■
