The Bank Of Israel announced a general set of discounts that the commercial banks will provide, including offering interest rates and benefits for money sitting in checking accounts.
Bank of Israel governor criticized the country's 2025 budget, cautioning that it would not bring down debt levels enough to offset a spike in spending caused by the war.
The central bank highlighted that gross domestic product went up by just 0.9% when compared to 2023, and productivity in the business sector shrank by 0.8%.
Turkey severed trade with Israel last year over its war in Gaza with the Palestinian terrorist group Hamas and has remained an outspoken critic of Israel's policies.
Hapoalim's shares were up 4.4% in afternoon trading in Tel Aviv and have gained more than 10% so far in 2025.
The Bank of Israel’s economic forecast does sound too good to be true. A lot of things could derail it. Here are several causes for concern.
"The interest rate will be set in accordance with inflation converging to its target, continued stability in the financial markets, economic activity, and fiscal policy," the bank said.
The rate has stayed at 4.5% since January 2024, when it was cut from 4.75%.
Compared with January 2024, mortgage taking was up 30% and up 15% from January 2023.
Apartment prices continued to rise in the second half of 2024 after these price increases resumed in the first half of 2024.
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