JERUSALEM, Sept 1 (Reuters) - The Bank of Israel cut short-term interest rates for the third straight time on Tuesday as price pressures remained contained, helped by a strong shekel ILS= against the dollar.
The central bank reduced its benchmark rate ILINR=ECI to 3.25% from 3.50%. It had cut rates in November and January, then paused due to the conflict with Iran and fears of a spike in supply-driven inflation, and then resumed cuts in May and July.
The annual inflation rate stood at 1.5% in July, well within the bank's 1% to 3% target range.
Eight of 14 economists polled by Reuters had expected no move on Tuesday, while the other six expected a 25 basis-point cut to 3.25%.
(Reporting by Steven Scheer; Editing by Hugh Lawson)