Bank of Israel Governor Amir Yaron’s mid-August remarks that the September 1 decision would be “live” and data-dependent, combined with expectations that July’s 1.5% inflation reading would rebound toward the 2% target midpoint, have anchored trader expectations for no change. The policy rate stands at 3.5% following the July cut, amid resilient Q2 growth, a still-tight labor market, and lingering geopolitical and fiscal uncertainties. Market pricing reflects caution that further easing could be deferred until clearer inflation and activity signals emerge, consistent with the central bank’s data-driven approach and the absence of fresh catalysts since the last reduction.