A dovish hike combined with hawkish talk

ISRAEL - Report 28 Nov 2022 by Jonathan Katz

1. Despite the 0.5% dovish hike, messages from the BoI remain rather hawkish.

2. We currently expect two more hikes, to a terminal rate of 4.0% in February 2023.

3. The MoF does not appear concerned that the cancellation of non-tradeable bonds will put pressure on tradeable bonds.

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