World Economy/Israel

🇮🇱

Israel

ISR

Middle East • Sovereign Currency: ILS

Analyze Israel with Schema AI

Nominal GDP

$0.53T

2024

Annual GDP Growth

+1.2%

YoY Q2 2024

Inflation (CPI)

3.5%

Oct 2024 YoY

Policy Rate

4.50%

Bank of Israel Key Rate

10Y Sovereign Yield

4.88%

10Y Shahar Bond

Unemployment Rate

2.7%

Sep 2024

Debt-to-GDP

68.5%

2024

Trade Balance

$-2.1B

Oct 2024

BLOOMBERG ECONOMICS MONETARY POLICY TRANSMISSION

🇮🇱BANK OF ISRAEL POLICY DASHBOARD

Target Instrument: Bank of Israel Key Rate • Sovereign: Israel (ISR)

STANCE: neutral

Next Meeting: 2026-11-25

LOOSER CONDITIONSIN LINE WITH TARGETTIGHTER CONDITIONS

STATUTORY BENCHMARK

4.50%Unchanged (0 bps)

Bank of Israel Key Rate

REAL CARRY SPREAD (r - π)

+1.00%

Neutral Equilibrium

OVERNIGHT BENCHMARK (O/N)

N/A

Statutory money market fixing

YIELD CURVE SLOPE (10Y - r)

+0.38%

Normal Upward Slope

WAGES & PRICES2 METRICS

Headline CPI Inflation (YoY)Oct 2024 YoY

Elevated above price stability band (+1.5% vs target)

CBSRef

3.50%

MILD LOOSE

Distance to Inflation Target (2.0%)Oct 2024 YoY

Headline inflation exceeds 2% anchor by 1.50 percentage points

CBSRef

+1.50%

MILD LOOSE

SUPPLY & DEMAND2 METRICS

Annual Real GDP Growth RateQ2 2024

Sluggish real economic momentum

CBSRef

1.20%

IN LINE

Unemployment Rate (Labor Slack)Sep 2024

Tight labor market conditions with minimal civilian slack

CBSRef

2.70%

LOOSER

FINANCIAL CONDITIONS4 METRICS

Bank of Israel Key RateBank of Israel Key Rate

Official statutory policy target rate set by Bank of Israel

Bank of IsraelRef

4.50%

LOOSER

Real Carry Rate (Policy - CPI)Calculated

Positive real return regime delivering restrictive monetary drag

Bank of Israel vs CBS

+1.00%

LOOSER

10-Year Sovereign Benchmark Yield10Y Shahar Bond

Long-term sovereign borrowing benchmark discounting term premium & inflation risk

Tel Aviv Stock Exchange (TASE)Ref

4.88%

IN LINE

Yield Curve Slope (10Y - Policy Rate)Calculated

Upward-sloping normal term structure (+0.38%)

Sovereign Debt Desk vs Central Bank Target

+0.38%

LOOSER

EXTERNAL & FISCAL2 METRICS

Current Account / Trade BalanceOct 2024

Trade deficit requiring external capital inflows or debt financing

CBSRef

$-2.1B

IN LINE

General Government Debt / GDP2024

Moderate sovereign debt overhang requiring disciplined budget management

Ministry of FinanceRef

68.50%

IN LINE

HISTORICAL RATE DECISION TRAJECTORY (BANK OF ISRAEL KEY RATE)

Verified Chronological Decisions

2026-10-09

4.50%

Policy Assessment Summary: Key interest rate set by the Monetary Committee.

Key Domestic Equities & Capital Markets

Major corporate champions tracked in WOWS with sovereign economic exposure

Index: TA-125 Index (TA-125)

TEVA• Generics & Pharma

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