The spike in inflation expectations is less justified in Israel
ISRAEL
- Report
08 Mar 2021
by Jonathan Katz
* Private consumption is set to accelerate as the economy has opened up significantly.
* The fiscal deficit reached 12.4% of GDP; we expect a lower deficit of 8.5% by year-end.
* Inflation expectations (as reflected in the bond market) have moved higher, but we think the inflation environment will remain relatively low.
* Politics: With two weeks to elections much uncertainty remains regarding the next coalition; the Yemina party is poised to have the decisive say.
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