The Bank of Israel maintained the interest rate unchanged at today's meeting, and Citigroup no longer expects Israel to resume interest rate cuts this year. Traders also removed bets on further easing policies being introduced. Israeli policymakers had earlier hinted at three more rate cuts by 2024, but they have increasingly adopted a more neutral stance since the beginning of the year. The change in strategy largely reflects the economic spillover effects of the Hamas war, which has dragged on for over seven months. Ronen Menachem, Chief Market Economist at Mizrahi Tefahot Bank, said, "People are more concerned that the interest rate spread between Israel and the United States may cause the already fluctuating shekel to further depreciate and increase inflationary pressures."