According to Calcalist, the dollar reached its lowest exchange rate with the shekel since July 2023, and is now worth 3.585 NIS. The Euro has also dropped against the shekel to 3.88 NIS.
Meanwhile, JP Morgan informed its clients that the Bank of Israel's decision to maintain the current interest rate was due to the Israeli government's expansionary budget policy, driven by the rising cost and needs of the war.
Consumer Price Index, Inflation
While this should mean coming reductions in the interest rate, but the Bank of Israel is likely to wait on the effects of Moody's downgrading of Israel's rating and the state budget.
Israel-Gaza War, Bank of Israel, Economy
After increasing interest rates over the past few years to curb inflation, the BoI cut the rate by 0.25% amid cautious optimism about inflation and the Israeli economy generally.
Israel-Gaza War, Economy
The Bank of Israel reported that its Composite State of the Economy Index showed that the negative effects of the war on the economy had moderated in November, its second month.
Israel-Gaza War, Economy
Gallant said "the strength of security and the strength of the economy are intertwined" in a meeting with the Governor of the Bank of Israel.
"The Cut Isn't Enough"
The Bank of Israel criticizes Smotrich's decision to cut the 2023 budget only and demands that he cut also the 2024 budget.
Exchange Rates
The dollar is trading for 3.87 NIS, the rate at which it was traded before the outbreak of Operation Swords of Iron. The euro is also softening and is trading for 4.13 NIS, the highest rate compared to the rate at which it was traded before the war.
The Treasury Denies
The Accountant General of the Ministry of Finance announced that, contrary to various publications, the State of Israel has not requested and will not request a loan from the Bank of Israel, according to him "the state's financing capabilities allow the government to fully finance all its needs"
Israel-Gaza War, Economy, Currency
A month into the war, the shekel is showing signs of strengthening, and is now worth 3.85 NIS against the dollar.
The Interest Rate
The drop in the price index in September was supposed to lower the interest rate, but the Governor of the Bank of Israel decided that due to the war and the economic uncertainty it brought, he left the interest rate unchanged.
The Dollar Continues to Rise
The dollar continues to rise, and this morning at the opening of the trading week in the local foreign exchange market, the dollar crossed the threshold of 3.8 NIS. This could lead the Bank of Israel to raise the interest rate again
The Bank of Israel's Report
In a report published by the Bank of Israel, it was found that the financial system remained stable despite the opposition of judicial reform opponents. However, economists warn that the implications of the continuation of the legislation, as well as the slowdown in growth and global banking difficulties, may challenge the system.
