Central Banks
Israeli Rate Cuts Are Off the Table as War Complicates Next Move
- Economists unanimous that key rate will be kept at 4.5% Monday
- Central bank boxed in by faster inflation, war risk, Fed pause
Israeli shoppers in a Carmel market in Tel Aviv, Israel.
Photographer: Kobi Wolf/BloombergIsrael’s central bank is set to hold interest rates for a fourth consecutive time, a pause likely to stretch for several months amid fears that fighting against regional militant groups Hamas and Hezbollah could escalate.
Economists surveyed by Bloomberg are unanimous that the monetary committee will keep its benchmark at 4.5%, where it’s been since a quarter-point cut to start the year. Governor Amir Yaron will speak to reporters after the rate meeting.