Reported 5 months ago
The Bank of Israel has decided to keep interest rates stable at 4.5%, aligning with economists' expectations, and has expressed concerns about inflation and the increasing budget deficit due to the ongoing war. Economic uncertainties, including geopolitical impacts and supply constraints, are influencing the bank's caution on future rate cuts. The war expenditure has led to a $16 billion bill, raising the budget deficit to 7% of GDP, while inflation is nearing the government's target range. Economic growth is expected to slow, and despite a 2% projected expansion in 2024, other agencies forecast a weaker outcome. The central bank faces challenges in stimulating the economy as inflation rates rise, reflecting ongoing economic pressures and uncertainties.
Source: YAHOO