Posted 10/23/2023, 5:53:00 PM
Bank of Israel Cuts Growth Forecast, Keeps Rates Unchanged Amid Gaza Conflict
- Bank of Israel cuts 2023-2024 growth forecasts due to war with Hamas, keeps interest rate unchanged
- War is constraining economic activity, hurting private consumption and ability to work
- Shekel has weakened ~5% vs dollar since start of war; Bank of Israel selling dollars to reduce volatility
- Central bank taking steps to freeze mortgage/loan payments and ease cash flow for those impacted by war
- Bank urges government to provide fiscal aid for security forces, residents near Gaza, families of victims