Current sectionIsrael NewsEconomy & FinanceThe central bank also revised down its deficit projections, but the change is conditional on Israel's defense spending remaining within the state budget. Both the IDF and Prime Minister Benjamin Netanyahu are seeking an additional 25 billion shekels ($8.3 billion) for defenseShare to FacebookShare to XArticle printing is available to subscribers onlyPrint in a simple, ad-free formatSubscribeComments: Zen reading is available to subscribers onlyAd-free and in a comfortable reading formatSubscribeNati Tucker09:06 PM • July 06 2026 IDTThe Bank of Israel cut its benchmark interest rate by a quarter percentage point to 3.5 percent on Monday, its second straight reduction, as inflation remained below the midpoint of the central bank's target range and inflation expectations continued to ease.Loading...Click the alert icon to follow topics:Bank of IsraelIsrael business news2026 Israel-Iran WarCommentsLoading...In the NewsIn the News: Live UpdatesNetanyahuHamasAli KhameneiMichigan Primary World CupBrad LanderHaQuizHaaretz PodcastGaza's Board of Peace Has Three Paths to Reconstruction. Israel Blocks Them AllKnesset Advances Gov't-controlled October 7 Probe as Opposition Boycotts VoteDozens Rally in Tel Aviv Calling for Release of Gaza Doctor Held Without TrialFormer Gaza Hostages Sasha Trufanov and Sapir Cohen Wed in Emotional CeremonyNetanyahu Warns U.S. Sale of F-35 Jets to Turkey Would 'Upset Balance of Power'Remembering and rebuilding two years laterICYMIIsrael Has Long Ignored Warnings of a 'Diplomatic Tsunami.' Now It Has ArrivedAn Israeli Principal Desegregated a Tel Aviv School. Here's What HappenedDumber Than a 10-year-old: Are Israeli Students Really That Stupid?103 Nails on the Map: How Israel's Government Is Burying the Two-state SolutionRep. Dan Goldman Says Support for Israel Cost Him New York Democratic PrimaryIn His Own Words: Naftali Bennett Is Committed to Annexing the West Bank