A dent in fiscal credibility could postpone easing
ISRAEL
- Report
04 Dec 2023
by Jonathan Katz
1. The coalition is finding it difficult to reduce civilian expenditure (coalition agreements, especially), as it approved additional spending for the war.
2. A dent in fiscal credibility in 2024 could result in a weaker shekel and postpone monetary easing.
3. Private consumption declined sharply in October but recovered strongly by end-November during the ceasefire.
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