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 Bank of Israel left its benchmark interest rate unchanged at 4.5% in its 8th straight such decision
The central bank noted that the inflation rate looks to rise in the coming months before easing again in the next year.
Among considerations discussed when determining the interest rate was that inflation in Israel has been on an upward trend, in contrast to global trends, he said.
Amir Yaron, the governor of the Bank of Israel, has worked to stabilize the shekel in the face of the multifront war and international boycotts.
Netanyahu and economic officials discuss Israel's 2025 budget amid fiscal challenges from ongoing conflict, aiming for parliamentary approval by year-end amidst rising deficit concerns.
"It has been four difficult months for Israel," Bank of Israel Governor Amir Yaron told a press conference. "Beyond security issues, the war brings with it marked economic
Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich agree on a second five-year term for Bank of Israel Governor Amir Yaron.
ECONOMIC AFFAIRS: Besides inflation, the shekel-US dollar rate will also impact the interest rate decision.
Yaron's five-year term ends at the end of 2023 and he has been tight-lipped on his plans.
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