Reported 5 months ago
Israel's central bank is considering keeping interest rates steady for the rest of 2024 due to surging wartime inflation and the likelihood of the US Federal Reserve delaying rate cuts, as the country's budget spending surges during the ongoing conflict with Hamas. The Bank of Israel, which signaled possible rate cuts earlier, is now expected to leave its benchmark rate at 4.5% amid concerns of a widening rate gap with the US impacting the shekel's exchange rate and inflationary pressures, despite recovering from recent losses. The prolonged conflict and increased government spending have contributed to rising inflation, leading to expectations for a more cautious monetary policy approach by the central bank to manage economic uncertainties and price pressures.
Source: YAHOO