The Bank of Israel’s September 1 decision to cut its policy rate by 25 basis points to 3.25 percent, the third consecutive reduction, has shaped trader expectations for the October 21 meeting. Annual inflation stood at 1.5 percent in July, below the target midpoint, while inflation expectations remain anchored near the center of the 1–3 percent range and the shekel has shown strength. Most forecasters anticipate a pause at the current level, citing the bank’s data-dependent approach, moderating price pressures, and the proximity of the October 27 Knesset elections as factors likely to favor stability over further easing or tightening. Geopolitical uncertainty and fiscal developments continue to influence the Monetary Committee’s assessments, supporting the strong market pricing for no change.