The Bank of Israel is expected to lower its benchmark interest rate by 25 basis points to 3.75% as the United States and Iran near a potential agreement to end hostilities. A survey of 14 economists revealed that eight anticipate the rate cut, citing stable inflation and the shekel's appreciation as key factors. The Israeli shekel recently closed at 2.9 per U.S. dollar, its strongest in over 30 years, reinforcing expectations of low future inflation. Rafael Gozlan, Chief Economist at IBI Investment Company, noted that the central bank's decision will hinge on geopolitical developments. If tensions remain stable, a rate cut is likely; however, any escalation could keep rates unchanged. The shekel has appreciated by 8% since the last rate decision in March and 24% over the past year, while inflation expectations for the next 12 months have decreased to 1.8%.