Bank of Israel Governor Prof. Amir Yaron left the interest rate unchanged and it will continue to stand at 4.5% per year.
The decision mainly signals a lack of confidence in the budget policy of the treasury and the government. The state of the economy is volatile and liquid, as is the Israeli government's policy regarding the fate of the abductees. The rise in inflation expectations is no accident. The Iranians spoiled the inflation war plans and Israel started preparing for an attack. The main beneficiaries of the decision are the banks and the main victims left on the side of the road are the credit consumers.