Bank of Israel Ending TELBOR Interest Rate

Jerusalem, 1 July, 2025 (TPS-IL) — The Bank of Israel announced that, Pursuant to the decision by the Telbor Committee, yesterday, on June 30, 2025, the Telbor interest rates for all periods were published for the final time. From here on, the SHIR interest rate will replace the Telbor interest rate as a basis for derivative transactions

The decision to replace the Telbor interest rate with the SHIR interest rate is in line with the decisions reached in major economies worldwide, in which IBOR type interest rates will be replaced by risk free overnight interest rates. The SHIR interest rate is equal to the Bank of Israel interest rate. However, on dates when the SHIR interest rate is not published, its value shall be what it was on the last publication date.

In February 2022, the Telbor committee decided that the SHIR (Shekel overnight Interest Rate) rate will eventually be the replacement for the Telbor interest rate, in shekel interest rate derivative transactions, at a time in the future when Telbor ceases and will serve as the overnight interest rate for the same day.

The Telbor interest rate is the Israeli version of the LIBOR interest rate (London Interbank Offered Rate) that serves as an underlying asset in the world market for interest-rate futures contracts, which is one of the largest and most liquid financial markets in the developed countries. In order to support the development of such a market in Israel, in 2006 the Bank of Israel established the inter-ministerial Telbor Interest Rate Committee.