Bank of Israel Governor warns taxes must rise after rate cut; market reacts with gains on Tel Aviv Stock Exchange while business sector backs decision.

Central bank cuts borrowing costs to 3.25%, warning of only partial recovery; manufacturers accuse Governor Yaron of doing too little too late, as strong shekel batters exporters

The Bank of Israel's Monetary Committee lowered the interest rate on Tuesday. The rate was previously lowered in July, when the BoI decided to cut the rate from 3.75% to 3.5%.