Recent low inflation readings near 1.5 percent, well inside the Bank of Israel’s 1–3 percent target, combined with the September 1 rate cut to 3.25 percent, have positioned a hold as the dominant outcome for the October 21 decision. Traders see limited scope for further easing after three consecutive reductions this year, with Governor Amir Yaron emphasizing data dependence and the need to monitor how prior moves affect activity and expectations. September CPI data due mid-month and an updated Research Department forecast will shape the meeting, while persistent geopolitical uncertainty and fiscal pressures support caution. A decrease remains possible only if inflation continues trending lower, but an increase is viewed as unlikely absent a sharp reversal in price pressures.