Tag #Bank Of Israel

How does the Bank of Israel's assessment of the 2025 budget align with its monetary policy decisions, and what are the potential long-term consequences?

The bank's decision is linked to the ongoing war's impact on the Israeli economy, characterized by uncertainty and moderate recovery. The maintained rate aims to balance economic growth with inflation control, targeting a 1-3% annual inflation rate while anticipating a rise to approximately 4% in the first quarter of 2025 due to factors like VAT increases and supply constraints. This approach reflects a delicate balancing act between supporting the economy and managing inflation.