Some signs of slowing growth could tilt the rate decision towards 0.5%

ISRAEL - Report 26 Sep 2022 by Jonathan Katz

1. Recent economic indicators point to some growth deceleration, despite strong business confidence.

2. This soft data could tilt the next rate decision (Oct 3) towards a 0.5% hike, but 0.75% remains a strong possibility in light of global “frontloading”.

3. With inflation y/y likely to remain above 4% through Q1 2023, we see the terminal rate reaching 3.75%.

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