Jerusalem — The Governor of the Bank of Israel, Amir Yaron, has indicated that the country is likely to see two additional interest rate cuts of 25 basis points each by September 2026, following the first rate reduction in nearly two years.
Speaking to Reuters on Monday after the long-awaited cut, Yaron said the economic environment had finally become suitable for easing monetary policy. Although inflationary pressures caused by supply disruptions during the two-year Gaza conflict have begun to ease, he cautioned that both geopolitical and economic uncertainties remain elevated. Despite this, domestic consumer demand continues to show resilience.
Yaron emphasised that the central bank’s approach to further easing would be gradual, noting that “two more quarter-point reductions by next September appear reasonable” given current conditions. His remarks suggest a cautious but steady path towards monetary normalisation, aimed at balancing inflation control with support for economic stability.
Meanwhile, investors continue to navigate rapidly shifting market dynamics amid the global rise of artificial intelligence. AI-driven investment strategies, such as Investing.com’s ProPicks, are reshaping stock selection with notable success. According to the platform, three out of four AI-managed global portfolios have outperformed their benchmark indices so far this year, with an impressive 98% recording positive returns.
ProPicks’ flagship Tech Titans strategy has outpaced the S&P 500 over an 18-month period, boosted by standout performers including Super Micro Computer, up 185%, and AppLovin, up 157%. As AI computing power increasingly influences market trends, analysts suggest that such tools may become a defining feature of next-generation investment decision-making.
The Bank of Israel’s cautious policy stance, combined with technological disruption in financial markets, sets the stage for a closely watched economic landscape ahead of 2026. Source : © Reuters.