The prospect of the US Iran agreement is heating up, and the Bank of Israel is expected to restart interest rate cuts According to BlockBeats, on May 25th, as the United States and Iran seem to be gradually approaching an agreement to end the war, the Bank of Israel is expected to cut interest rates. According to a survey of 14 economists, 8 of them expect the Bank of Israel to lower its benchmark interest rate by 25 basis points to 3.75% on Monday. Rafael Gozlan, Chief Economist of IBI Investment Company, said, "From the perspective of the central bank, stable inflation around the midpoint of the target range (1.9%), coupled with a significant appreciation of the shekel, supports a slight reduction in interest rates. The next decision will depend on geopolitical developments. If the situation does not escalate significantly, we expect to cut interest rates; if the situation worsens, interest rates may remain unchanged." The Israeli shekel closed at 2.9 shekels per US dollar last Friday, maintaining its strongest level in over thirty years, further consolidating market expectations of mild future inflation. According to a survey released by the Bank of Israel on May 19th, the average inflation expectation for the next 12 months in Israel has dropped from 2.3% to 1.8%. Since the last interest rate decision by the Monetary Policy Committee at the end of March, the shekel has risen by 8%, with a cumulative appreciation of nearly 24% over the past year. Other factors supporting interest rate cuts include the slow recovery of the Israeli economy from the war with Iran, and even if an agreement is ultimately reached, economic growth is not expected to accelerate significantly.