Israeli Inflation Falls, Raising Chance of Rate Cuts to Support Economy Amid War
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Annual inflation in Israel fell to 3.8% in September, below expectations and lower than previous months
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Decline raises odds that Bank of Israel will cut interest rates at upcoming meeting to support economy during war with Hamas
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War expected to dampen economic growth and consumer spending, putting downward pressure on prices
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Economists now forecast interest rate cuts up to 50 basis points as inflation moderates and economy faces challenges
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Bank of Israel already took action to defend currency with plans to sell $30 billion in foreign exchange after war declaration