The Bank of Israel has decided to keep interest rates unchanged for the eighth consecutive meeting, despite inflation remaining above the government's target range. The central bank is concerned about economic uncertainty due to the ongoing war with Hamas in Gaza and the country's investor risk premium. Inflation dropped to a four-month low of 3.4% in November, but central bankers have warned of rate increases if inflation remains high. The economy rebounded in the third quarter, growing at an annualized rate of 3.8%.