Walla!
We solved it with Liat Ron/Walla system!
The economic situation of households has worsened in the last two years, according to the review of Alex Zbzinski, Chief Economist at Meitav Investment House.
A worrying parameter is the consumer confidence index in Israel, which is close to a historic low.
One of the manifestations of the low index is a record in the proportion of households that do not intend to buy a car or an apartment in the next two years: 94% answered that they would not buy an apartment and 93% would not buy a car.
This is the highest figure since the start of the test in 2011.
The consumer confidence survey is a mandatory survey in all member countries of the OECD organization, with Israel's accession as a member of the organization in 2011, the Central Bureau of Statistics began to conduct the survey and in the latter, as mentioned, the lowest level of those who said that they intended to buy an apartment or a car in the next two years.
Zbrzezinski cautions that sentiment can change quickly.
Another parameter that indicates the economic difficulty of the public appears in the CBS household survey, according to which the percentage of households that manage to save and whose income is higher than their expenses has been on a downward trend for the past two years.
According to Zbezinski, "behind these data is not just sentiment, but Economic changes related to the effect of interest rate increases for loan repayments and the increase in inflation that inflated household consumption expenditure.
A decrease in inflation and the Bank of Israel interest rate can help improve their financial situation."
Savings.
The percentage of households that manage to save has been on a downward trend for the past two years/ShutterStock
What can help households is an interest rate cut, where according to Meitav's assessment, if no unusual events occur until the announcement of the interest rate on Monday next week, the considerations in favor of the interest rate cut will increase.
These considerations include, among others, the return of the interest rate to the inflation target, a recovery in activity in the economy, the strengthening of the shekel, as well as the continuation of the slowing trend in bank credit to businesses and households.
Another argument is that as of now the downgrade has not caused damage to the local market when, according to Zbezinski, "the Bank of Israel's concerns about threats to financial stability have not materialized, at least for now. Even the downgrade of Moody's has not caused damage to the local markets. Israel's risk premium decreased last week. The shekel is very strong. Government bond issues are in particularly strong demand.
The Tel Aviv Stock Exchange index achieved a better return after Moody's announcement than most stock exchanges in the world. The margins in the corporate market are lower than before the war."
He adds that "The Bank of Israel has indeed conveyed a message according to which the interest rate will decrease slowly and gradually, but in light of the rapid decrease in inflation and the other circumstances, it is expected to adjust the policy to the circumstances."
More on the same topic:
Savings
Central Bureau of Statistics
Buying an apartment
buying a car
Bank of Israel interest rate