Data in early 2019 point to some acceleration

ISRAEL - Report 25 Mar 2019 by Jonathan Katz

Initial data for Q1 2019 point to some acceleration in activity, as underlined by the BoI Composite Index. Despite signs of improvement in growth we do not envision a rate hike this year, unless inflation surprises on the upside. Housing inventory is expected to increase in the coming quarters, supporting slowing rental prices. Politics: The polls still favor a scenario in which a right wing/religious party coalition is formed but much will depend on whether several small parties make it above the minimum threshold.

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