Newsletter
Newsletter Support JNS

Bank of Israel Governor says interest rates will increase further

“If everything goes according to plan, and all plans are subject to uncertainty, we predict that inflation will enter the target range by the middle of next summer and may be more in retreat towards the end of the summer,” said Bank of Israel Governor Prof. Amir Yaron.

The Bank of Israel in Jerusalem. Credit: Ester Inbar via Wikimedia Commons.
The Bank of Israel in Jerusalem. Credit: Ester Inbar via Wikimedia Commons.

The Bank of Israel, headed by Governor Prof. Amir Yaron, said interest rates in Israel would continue to increase from the current 2.75% to around 4.5 - 5% by the end of the year.

“Inflation is affecting a wide range of items, and over time more and more of these items are being identified with high demand. That is why we are continuing the process of raising the interest rate,” Yaron told the Israeli business publication Globes on Tuesday.

“Our estimates are that inflation will be between 4.5% and 5% until the end of the year and then a slow process of decline will begin,” he said, adding, “If everything goes according to plan, and all plans are subject to uncertainty, we predict that inflation will enter the target range by the middle of next summer and may be more in retreat towards the end of the summer.”

The rising interest rates affect many businesses and families, mainly due to an increase in mortgage rates, Yaron acknowledged.

“Antisemitism is on the rise, and it’s occurred under your watch,” the Republican nominee told New York Gov. Kathy Hochul, “and Zohran Mamdani is fueling it.”
Israel’s foreign minister called it a historic day for ties between the two countries and an important day for the capital.
“I used to worry because they were black Jews, and I was more concerned that they were black,” Andrea Martin told JNS of her sons. “I never thought when I sent my kids away to college that Max would have to worry about hot coffee being poured on him in a library.”
“I am proud to lead a tremendous revolution in settlement in Judea and Samaria and to effectively kill the idea of a Palestinian state,” Israeli Finance Minister Bezalel Smotrich told JNS.