The Central Bureau of Statistics will publish the Consumer Price Index for October at 18:30 this evening. In the interest rate market, economists expect a slight moderation in the annual inflation rate. The Consumer Price Index (CPI) for October is expected to increase by 0.5–0.4 percent, leading to a slight moderation in the annual inflation rate to 3.7 percent, from 3.8 percent last month.
Bank of Israel Governor Prof. Amir Yaron at the Finance Committee // Photo: Knesset Channel
Bank of Israel Building, Photo: Oren Ben Hakon
Despite the expected decline in inflation in Israel, an interest rate cut is not on the horizon for now. According to Bank Hapoalim's economists, "As long as the war continues, and with it the uncertainty regarding the budget, the interest rate will remain unchanged. At this point in time, the Bank of Israel prefers specific assistance to small businesses that were harmed by the war, by subsidizing sources of financing for loans to banks."
The Governor of the Bank of Israel made it clear in his recent speeches that the top priority today is calming the markets and their stability, while lowering the shekel interest rate will increase the pressure to depreciate the shekel.
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