ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Weekly report, September 14, 2026: August CPI in focus, fiscal position remains strong, political deadlock persists
ISRAEL · Report · 14 Sep 2026
The main focus this week is the August CPI, which we expect to rise by 0.8% m/m, lifting annual inflation to around 1.7%. A higher-than-expected reading, particularly above 0.8%-0.9%, together with higher oil prices and increased geopolitical uncertainty, could shift the Bank of Israel’s relative...
August CPI in focus as higher oil prices increase inflation risks
ISRAEL · In Brief · 14 Sep 2026
The Israeli economy was largely idle on Sunday for Rosh Hashanah (financial markets are always closed on Sundays), while the external environment deteriorated over the holiday period. Houthi advances near Bab el-Mandeb and attacks on Saudi oil infrastructure and shipping in the Strait of Hormuz p...
Strong tax revenues keep the fiscal deficit low in August, but defense spending could push it higher by year-end
ISRAEL · In Brief · 09 Sep 2026
Israel’s fiscal data for August continued to tell a positive story. Tax revenues continued to show strong and surprisingly positive growth, while the fiscal deficit remained well below earlier expectations. The numbers show a 12-month rolling fiscal deficit of 3.2% of GDP in September 2025-August...
Weekly report, September 8, 2026: Dovish BoI tone, inflation to edge higher, rates on hold
ISRAEL · Report · 08 Sep 2026
BoI officials struck a relatively dovish tone in the past week, citing both weaker underlying growth excluding production abroad and the strong shekel. Softer wage growth also supports this view. Inflation is likely to edge slightly higher in the near term: we expect the August CPI to rise by aro...
Bank of Israel officials strike a relatively dovish tone after the rate cut
ISRAEL · In Brief · 04 Sep 2026
Bank of Israel officials strike a relatively dovish tone after the rate cut Following yesterday's 25bp rate cut to 3.25%, comments by Governor Amir Yaron and Deputy Governor Andrew Abir reinforced the relatively dovish message. Both emphasized that underlying growth is considerably more moderate ...
Bank of Israel cuts rates to 3.25% in a somewhat unexpected move
ISRAEL · In Brief · 02 Sep 2026 · 1 response
The Bank of Israel cut its policy rate by 25bp to 3.25%, its third consecutive rate cut. The decision was somewhat surprising. As we noted ahead of the meeting, when the decision when the decision is not clear-cut, the Bank of Israel has generally tended to err on the side of caution. This time, ...
Weekly report, August 31, 2026: BoI rate decision tomorrow, politics approaches the candidate-list deadline, and some loss of economic momentum
ISRAEL · Report · 31 Aug 2026
The Bank of Israel will announce its interest-rate decision tomorrow. The decision appears finely balanced, although our view remains that the Bank is more likely to wait rather than cut rates. The August CPI is forecast to rise by a relatively high 0.8%, followed by a 0.2% decline in September. ...
Weekly report, August 24, 2026: Nvidia boosts Israel’s GDP growth, rate cut remains a close call, Netanyahu strengthens his grip on Likud
ISRAEL · Report · 24 Aug 2026
New CBS data show a widening gap between Israel’s headline GDP and domestic growth, largely reflecting Nvidia-related production abroad. We have revised our 2026 forecast, with GDP growth at 4.2% and exports rising 10.2%. The weaker domestic picture strengthens the case for monetary easing, but f...
Production abroad, led by Nvidia, is becoming a significant driver of Israel’s GDP growth
ISRAEL · In Brief · 21 Aug 2026
The release of the Q2 national accounts has renewed the discussion over the growing impact of production abroad by Israeli companies on Israel’s GDP, and particularly the contribution of Mellanox, acquired by Nvidia in 2020, to recent GDP growth. The discussion intensified after the CBS began pub...