Recent Bank of Israel actions and data shape the September 1 decision outlook. After consecutive 25-basis-point cuts in May and July that brought the policy rate to 3.50 percent, inflation has held near or below the 1–3 percent target midpoint, with the June reading at 1.6 percent. The shekel remains firm, energy prices have eased following the U.S.–Iran ceasefire, and growth indicators point to a steady post-conflict recovery. Governor Amir Yaron’s forward guidance anticipates further gradual easing toward 3 percent over the coming year, yet the data-dependent stance and the shift of the next meeting from late August support trader consensus around no change at the early-September gathering. Incoming CPI prints and activity reports before the decision remain the main near-term variables that could tilt probabilities toward an additional reduction.