Recent inflation data showing a further decline to 1.5% in July, comfortably inside the Bank of Israel's 1–3% target range, combined with post-conflict economic rebound signals and GDP forecasts of 4% growth for 2026, have anchored trader expectations for a hold at the current 3.5% policy rate. The July cut of 25 basis points already delivered two consecutive easings, and officials have signaled a measured approach ahead of the early September meeting to monitor incoming indicators. This dynamic supports the strong consensus around no change while leaving modest room for an additional reduction if price pressures continue moderating, with an increase viewed as improbable absent major upside surprises in activity or external conditions.