Bank of Israel Governor Amir Yaron said in an interview with CNBC at the World Economic Forum in Davos yesterday that inflation in Israel “is still higher than our target, which is between 1% and 3%.”
“We expect inflation to rise in the first half of the year, partly because of taxes, and partly because as the recovery occurs, we see demand moving faster than supply constraints,” Yaron said. Regarding the possibility of lowering interest rates, Yaron said: “In the second half, we hope that inflation will return to balance, and will moderate on its own. We see one or two possible cuts in the second half of the year, when inflation is supposed to decline.” Go to target.”
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Yaron said he expects to see GDP growth of 4% in Israel in 2025 and 4.5% in 2026, after an estimated growth of just 0.6% in 2024, as long as there is no further military escalation.
“I hope that the ceasefire will be a turning point away from October 7, that terrible day,” Yaron said. “All the problems that we have seen, people on both sides are seeing them… I think that if they are to have a lasting impact, they must pave the way for regional arrangements that will facilitate rehabilitation and, more importantly, sustainable security. It will provide economic growth, which will clearly help the Israeli economy.” “But not just the Israeli economy – I think it will help the region as a whole.”
Published by Globes, Israel Business News – en.globes.co.il – on January 22, 2025.
© Copyright Globes Publisher Itonut (1983) Ltd., 2025.
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