Israel

Expected Inflation Rates from Capital Market Analysis

The Bank of Israel published inflation expectations data derived from capital market analysis for 2021-2026, including breakeven inflation rates calculated from unindexed and CPI-indexed government bond yields. The data includes forecasts from commercial banks, internal interest rates from the five large banks, and inflation contracts. Inflation expectations show a declining trend from 2022 peaks of 3.1% toward 1.5-2.0% by early 2026.

Bank of Israel Publishes 2025 Citizens Fund Annual Report

The Bank of Israel and the Ministry of Finance published the 2025 Annual Report of the Citizens of Israel Fund, a sovereign wealth fund managing state revenues from oil and gas windfall profits. As of December 31, 2025, the Fund's assets under management amounted to approximately USD 2.8 billion. The Fund recorded a nominal return of 18.4% and a real return of 15.4% in USD terms during 2025, with USD 350.7 million in deposits and USD 51.7 million transferred to the State Treasury.

Foreign Exchange Reserves at the Bank of Israel, March 2026

The Bank of Israel reported that the country's foreign exchange reserves stood at $228,271 million ($228.3 billion) at end of March 2026, a decrease of $6,274 million from the revised $234,545 million at end of February 2026. The decrease was primarily due to a revaluation effect that reduced reserves by approximately $8,936 million, partially offset by government FX activities of approximately $2,681 million. Reserves represent 37.2% of GDP.

Monetary Committee Quarterly Meeting with Private Forecasters

The Bank of Israel Monetary Committee held its quarterly meeting with private forecasters who provide projections for inflation, interest rates, and exchange rates. Governor Prof. Amir Yaron and Committee members discussed recent economic developments including operation 'Roaring Lion.' The Research Department presented its March 30, 2026 economic assessment alongside the interest rate announcement.

Israel Foreign Exchange Reserves 2025 Annual Report

The Bank of Israel published its annual report on the investment of Israel's foreign exchange reserves for 2025. Israel's foreign exchange reserves increased by approximately $14.9 billion to $229.5 billion at year-end 2025. The portfolio achieved a 7.9% return in 2025, compared to 6.7% in 2024, driven by capital gains on equities, interest income, and exchange rate differentials.

Governor of Israel discusses war economic impact

The Bank of Israel Governor held a monetary policy press briefing announcing that the Monetary Committee decided to keep the interest rate unchanged amid Operation Roaring Lion. The economy shows resilience with February inflation at 2 percent, though GDP shortfall reached 3.4 percent at end of 2025 with cumulative wartime shortfall of 8.5 percent since October 2023.

Research Department Staff Forecast - GDP Inflation Interest Rate

The Bank of Israel Research Department published its March 2026 macroeconomic staff forecast projecting GDP growth of 3.8% in 2026 and 5.5% in 2027. Inflation is expected to reach 2.2% in 2026 and 1.8% in 2027, with the average interest rate in Q1 2027 forecast at 3.5-3.75%. The forecast assumes Operation 'Roaring Lion' ends by late April 2026.

Israel keeps interest rate at 4.00 percent

Israel keeps interest rate at 4.00 percent

Public's Financial Assets Portfolio Increased in Q4 2025

The Bank of Israel reported that the public's financial assets portfolio increased by approximately NIS 287.4 billion (4.2 percent) in the fourth quarter of 2025, reaching NIS 7.2 trillion. For the full year 2025, the portfolio grew by 15.5 percent, driven primarily by increases in equities and cash/deposits.

Nonfinancial Private Sector Debt Rose 2.8% to 2.5 Trillion NIS

The Bank of Israel reported that nonfinancial private sector debt in Israel increased by 2.8% to NIS 2.5 trillion in the fourth quarter of 2025. Business sector debt rose 3.6% to NIS 1.5 trillion, while household debt increased to NIS 903 billion.

Expected Inflation Rate Derived from Capital Market Sources

The Bank of Israel has published its latest data on expected inflation rates derived from capital market sources, including breakeven inflation rates and inflation forecasts. The data covers annual figures from 2021-2025 and monthly data for 2025 and early 2026, with current data also provided.

Index of Economic Activity rose 0.2% in February

The Bank of Israel reported that the monthly Index of Economic Activity increased by 0.2 percent in February 2026. This growth is less than in the preceding three months and reflects data prior to recent geopolitical events.

Israel's International Investment Position, Q4 2025

The Bank of Israel reported that Israel's outstanding liabilities to abroad increased by approximately $28 billion in Q4 2025, reaching $652 billion. Nonresidents' direct investments in Israel and prices of Israeli securities held by nonresidents also increased during the quarter. The full year 2025 saw net investments in the economy by nonresidents totaling $39 billion.

Bank of Israel Report: Fiscal Impulse During War Increased Demand

The Bank of Israel released a report excerpt analyzing the fiscal impulse during wartime. The report indicates that increased domestic defense consumption led to a significant fiscal impulse, reflecting fiscal policy's positive impact on aggregate demand, though it moderated in 2025 due to tax increases.