Israel's central bank has cut its benchmark interest rate by 0.25 percentage points to 4.25 percent, marking the first reduction in nearly two years. This decision was influenced by a recent decline in the country's annual inflation rate.

• The interest rate was lowered from 4.75 percent to 4.5 percent on January 1, 2024.
• The annual inflation rate has moderated to 2.5 percent, falling within the government’s target range of 1 to 3 percent.
• Finance Minister Bezalel Smotrich stated this cut indicates Israel is on a path to "tremendous economic growth."