The Bank of Israel's next rate decision on September 1 follows its July cut of 25 basis points to 3.5 percent, driven by moderating inflation near 1.5 percent, a firm shekel, and post-ceasefire economic rebound with 4 percent projected 2026 growth. Traders assign a 73 percent probability to holding rates steady, reflecting stable price pressures and the central bank's recent easing cycle that already brought the benchmark to its lowest level since early 2023. A further 25-basis-point reduction carries 27.5 percent odds amid Governor Amir Yaron's comments on potential additional easing toward 3 percent over the coming year, though incoming data on inflation, labor markets, and energy prices will shape the Monetary Committee's assessment.