The Bank of Israel has decided to keep interest rates unchanged for the eighth consecutive meeting. Despite a slight easing of inflation, economic uncertainty caused by the ongoing war with Hamas in Gaza has led to the decision. The central bank is also concerned about Israel's investor risk premium, which has recently dropped after a spike at the start of the war. Inflation in Israel remains above the government's target range of 1-3%. The bank expects inflation to rise in the first half of the year due to tax changes and supply constraints, before moderating in the second half.