Recent inflation readings at 1.5% and the Bank of Israel's September 1 cut to 3.25% have reinforced trader expectations of a pause at the October 21 decision. The Monetary Committee has signaled data dependence, citing upward risks from fiscal pressures, defense spending, and geopolitical uncertainty after four reductions since early 2026. Minutes from the latest meeting revealed internal division, with one member opposing further easing. Economists broadly anticipate steady policy through at least the first half of the year pending clearer inflation trends and economic response. A further cut would require sustained disinflation or shekel appreciation, while an increase remains improbable absent sharp price pressures or external shocks.