The prime rate in Israel directly affects mortgages, business loans, and personal credit. Whether you’re buying a home, refinancing, or borrowing for an expense, understanding how the rate has moved over time gives crucial context to today’s borrowing costs.
This complements our main article on the Prime Rate in Israel, which explains who sets the prime rate, how it’s determined, when it’s announced and more.
Israeli Prime Rate Historical Graph, 1997 – present
The graph is interactive. Hover over points to see exact rates on specific dates.
Key Historical Insights on the Israeli Prime Rate
- Oct 1997 – Sept 2000: Prime rates were in double digits, averaging over 12.50%
- Oct 2000 – Nov 2003: Rates fell below 10% for the first time, averaging over 8.25%
- Jan 2004 – July 2014: Rates fluctuated and declined further, averaging roughly 4.50%
- Aug 2014 – March 2022: Prime hit its lowest point, holding at either 1.60% or 1.75% for 92 months (nearly 8 years!) in a row
- April 2022 – May 2023: Prime was raised at every Bank of Israel meeting over this period, peaking at 6.25%
- Jan 2024: First rate cut in nearly four years, 0.25% leaving the rate at 6.00%
- Nov 2025 – September 2026: Five rate cuts in ten months, resulting in a rate of 4.75%
During low-rate periods, borrowers enjoyed historically affordable mortgages. The 2022 – 2023 spike significantly increased monthly payments, catching many borrowers by surprise.
Israeli Prime Rate History – Table
Below is a table with the history of the prime rate in Israel from October 1997 through the present.
All historical data is courtesy of the Bank of Israel
Frequently Asked Questions
In November 1998, the prime rate peaked at 15.00%.
1.60% – from February 2015 through November 2018 and again from April 2020 through March 2022
To fight inflation. The Bank of Israel moved in line with global central banks to raise rates quickly.
Nobody can predict with certainty. Rates may ease when inflation is under control, but Israel is unlikely to return to 1.6% levels soon.
Take Control of Your Borrowing and Finances
Understanding the history of the prime rate is valuable, but what really matters is how it impacts your own finances. Whether you’re buying a home, refinancing a mortgage, or planning your financial future, the right guidance can save you money and make a big difference.
I help clients:
- Secure the best mortgage rates and terms in Israel, even in the toughest rate environments
- Refinance their mortgages, to increase cashflow and save hundreds of thousands of shekels
- Plan and optimize personal finances – pay down debt strategically, create budgets that work, and make their money work as hard as they do through one-on-one financial coaching.
🗓️ Book a mortgage consultation or a financial coaching consultation. Together, we’ll make sure you’re not just reacting to interest rate changes; you’re taking proactive control of your financial future.
