The chairman of the Business Sector Presidency welcomed the Bank of Israel's interest rate cut, saying it provides crucial relief from heavy credit costs as the economy transitions from three years of war to a growth phase. The cut will allow businesses to ramp up investment and hiring, according to N12.
At 16:36 Jerusalem, Dubi Amitai, chairman of the Business Sector Presidency, said the Bank of Israel's interest rate cut 'enables the business sector to invest, hire, and return to growth,' according to N12. The comment follows the central bank's decision earlier today.
At 16:00 Jerusalem, the Bank of Israel lowered its benchmark rate by a quarter percentage point to 3.5%, the third cut in 2026, as reported by i24NEWS. The Manufacturers Association of Israel welcomed the move but called it insufficient, describing it as 'a step in the right direction, but far from enough.' At the same time, Amitai initially welcomed the cut as 'necessary relief' for the economy.
The rate cut comes as inflation stabilizes and the economy shifts from a wartime phase to growth, as The Zioneer has reported. The central bank's decision was in line with analyst forecasts.
No further details on the size or timing of the cut were provided in Amitai's latest statement, though those were already known.
5 developments
- DevelopingHi-Tech Union chair says Bank of Israel rate cut 'a step in the right direction, but insufficient'
- DevelopingLahav chair: Bank of Israel rate cut insufficient, half-point reduction was needed
- DevelopingAnalysts assess Bank of Israel will cut interest rate by quarter point tomorrow
- DevelopingBuilders head calls on Bank of Israel to cut rate to 2.5%, slash rental taxes
Source and signal
- Internal intake