FX.co ★ Bank of Israel Holds Interest Rate at 4.00% in February Amid Economic Caution

The Bank of Israel kept its key interest rate unchanged at 4.00% in February 2026, maintaining the level set at its previous decision in January 2026. The steady rate underscores a cautious monetary stance as policymakers opt for continuity rather than further tightening or easing.

With February’s decision, the central bank signals a wait-and-see approach, holding borrowing costs at 4.00% for a second consecutive month. The unchanged rate suggests that, for now, authorities judge the current policy setting as appropriate in balancing price stability and broader economic considerations.

The latest data, updated as of 23 February 2026, will be closely watched by markets and businesses looking for indications of when the Bank of Israel might next adjust its policy path, especially as future inflation and growth readings shape the outlook for borrowing costs in the months ahead.