Monetary loosening likely to be postponed until hostilities subside

ISRAEL - Report 30 Oct 2023 by Jonathan Katz

1. Governor Yaron has strongly emphasized that monetary loosening will be postponed until after shekel stabilization.

2. The shekel could stabilize in the short run (or even appreciate), assuming more certainty regarding a limited scope of the conflict.

3. Recent data underline Israel’s positive external fundamentals, with exports of both industry and high-tech services expanding.

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