Recent successive 0.25 percentage point reductions have brought the Bank of Israel policy rate to 3.25 percent, the lowest level since late 2022, amid annual inflation at 1.5 percent and within the 1–3 percent target range. Market participants view this easing cycle as having advanced far enough for the Monetary Committee to assess incoming data before further moves, with the September CPI release arriving days before the October 21 decision and updated staff forecasts due alongside it. Trader pricing reflects this pause as the base case while noting that sustained low inflation or weaker growth readings could still support another cut, whereas any upside surprise in prices or renewed geopolitical pressures on the shekel would reinforce the hold.