Israel is grappling with a growing budget deficit, reaching approximately 3.4% of the Gross Domestic Product (GDP) in the last 12 months ending in November. The deficit stands at about NIS 62.3 billion, with NIS 34 billion attributed to expenses incurred during the...
Today, the shekel is experiencing a downturn in the wake of reports predicting the end of a cease-fire and the resurgence of conflict. Against the backdrop of a recent shooting attack in Jerusalem that claimed three lives and left seven wounded, financial markets have...
In today's decision, the Monetary Committee of the Bank of Israel opted to maintain the country's interest rate at 4.75%, marking the fourth consecutive time the rate has remained unchanged. The decision reflects a cautious approach, considering the ongoing war and...
The Israeli capital market has been closely mirroring the geopolitical developments on its northern border, offering a unique lens into the financial market's sensitivity to regional tensions. A recent Hezbollah attack on six Israeli civilians triggered a 1.7% drop in...
In October 2023, the economic scene saw a mix of ups and downs, with the Consumer Price Index (CPI) ticking up by 0.5%, which is in line with expectations. Here's a simplified breakdown of the key points: Prices on the MoveUpward Trends: Clothing and Footwear: Went up...
In recent weeks, the shekel had been experiencing a significant devaluation against the US dollar due to the ongoing war with Hamas. However, this week marked a remarkable turnaround, as the shekel strengthened against the dollar, causing the American currency to move...
Classical economics, a field of study built on assumptions and rationality, often finds itself challenged in non-routine situations like wars. In such cases, economic forecasts become incredibly complex due to the high level of uncertainty surrounding how the conflict...
In the ever-shifting landscape of economic decision-making, the Bank of Israel has found itself at a crossroads in the wake of recent developments. Just two weeks ago, the expectation was that the central bank would increase interest rates by a quarter of a percent,...
In the last eighteen months, the exchange rate between the Israeli Shekel (ILS) and the United States Dollar (USD) has been on a rollercoaster ride, with fluctuations impacting various sectors of the Israeli economy. However, the outbreak of war with Hamas has...
The global credit rating agency Fitch announced on Tuesday that Israel's credit rating has been placed under "Rating Watch Negative." This decision comes in response to a shift in the perception of risks associated with the ongoing war with Hamas. Fitch's decision to...