Markets shrug off escalation

ISRAEL - Report 15 Apr 2024 by Jonathan Katz

1. So far, markets appeared unfazed by the recent Iranian strike on Israel, including the equity, bond and FX markets.

2. The BoI kept rates unchanged at its most recent meeting due to current elevated geopolitical risks, but expects easing in the coming year.

3. The economy has recovered rapidly (except for construction and incoming tourism), and the labor market continues to tighten.

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