The Bank of Israel has decided to lower its interest rate from 4% to 3.75%, marking the first reduction since January. This decision follows two consecutive rate holds and is influenced by the declining dollar. The bank highlighted ongoing geopolitical uncertainties and rising global inflation, although inflation in Israel remains stable. The shekel has significantly strengthened against the dollar and euro, but inflation risks persist. Real estate professionals have reacted cautiously, noting that the reduction is too slow to effectively support the market. The rate cut is expected to slightly ease the burden on borrowers, but monthly repayments remain high. Experts call for a swift transmission of this reduction to consumers and governmental measures to address the high cost of living and housing prices.
