The Central Bank of Israel has remained on the sidelines for the ninth consecutive time after soaring inflation.

On February 24, Jinshi data reported that the Central Bank of Israel maintained the short-term Intrerest Rate at 4.5% for the ninth consecutive meeting on Monday, in line with market expectations. Previously, despite the conflict with Hamas, the economy remained weak, and the country's inflation rose in early 2025. In January last year, as inflation eased and economic growth slowed, the Central Bank of Israel cut the Intrerest Rate by 25 basis points. However, it has since maintained policy stability and indicated that it is not in a hurry to cut rates again while inflation remains above the target level. With the pump of tax revenue and water and electricity prices at the beginning of this year, the annual inflation rate in January accelerated from 3.2% in December to 3.8%, the highest level since September 2023, exceeding the government's annual target of 1-3%. The annualized rise rate of the economy in the fourth quarter was 2.5%, far below expectations, and 1% for the entire year of 2024.