Israel's central bank has been experimenting with a digital shekel with its Hong Kong counterpart and the Bank for International Settlements.
The issue of whether Bank of Israel Governor Amir Yaron will seek, or be reappointed for a second term, has loomed over financial markets for months.
There’s still no telling when the interest rate will decline, experts note.
Recent signs of decreased inflation indicate an unchanged interest rate, as consumers begin saving and global pressures subside.
According to the BoI’s latest report, judicial reform and inflation rate adjustments are the primary factors that can significantly impact Israel’s risk premium.
A stationary CPI may be a signal that the bank’s efforts to mitigate inflation are working — assuming the shekel and Israel’s political stability don’t crumble.
“The government has fed inflation concerns rather than addressing them, leaving the Bank of Israel as the sole responsible adult.”
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