Deflation appears likely in 2020
ISRAEL
- Report
30 Mar 2020
by Jonathan Katz
With a partial lockdown in effect (and tightening), a sharp recession is expected in the second quarter at minimum. Inflation is expected to be negative this year due to weak demand, lower rental prices and lower energy prices. A unity government is likely to facilitate budget approval and a more comprehensive fiscal program. Following the announcement of a committed BoI plan to buy government bonds, the next step is likely to be corporate bonds.
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