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.
"A prolonged war on multiple fronts could weaken economic activity further and heat inflation, raising the risk of stagflation," Barclays economist 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.
Residents of the South up to 7 km. are eligible for extended benefits, as opposed to residents up to 30 km. from the border as previously.
Many observers have raised questions about how the Nagel committee will be able to reach the optimal conclusions regarding Israel’s future defense posture without a review of the October 7 failures.
Uncertainty about the 2025 budget and adjustments needed to shrink the deficit may make lowering inflation harder, the BOI said.
Recently, the Bank of Israel commenced its “Digital Shekel Challenge,” an initiative for fintech to spearhead the creation of Israel’s digital ledger
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.
The Bank of Israel plans to improve its payment system with a digital shekel, but it is waiting for other advanced economies to launch digital currencies.
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