Bank of Israel Governor Amir Yaron listens to remarks on "Monetary Policy Challenges in a Global Economy" during the international Monetary Fund's (IMF) annual research conference on "Global Interdependence" in Washington, U.S., November 9, 2023. REUTERS/Kevin Lamarque

JERUSALEM (Reuters) -Bank of Israel Governor Amir Yaron said on Monday that economic conditions became appropriate for the first interest rate reduction in nearly two years but the pace of cuts is likely to be slow with just two more quarter-point reductions "reasonable" by next September.

Yaron told Reuters after the rate cut that while inflation pressures stemming from supply constraints seen during the two-year Gaza war had started to subside, geopolitical and economic uncertainty remained high, while consumer demand was robust.

(Reporting by Steven ScheerEditing by Tomasz Janowski)