Latest news with #BankOfIsrael
Bloomberg
07-07-2025
- Business
- Bloomberg
Israel Holds Rates, Giving Inflation Time to Return to Target
Israel's central bank kept interest rates unchanged for the 12th consecutive time, giving a recent rally in the shekel more time to slow inflation and pave the way for lower borrowing costs. The Bank of Israel left its base rate on hold at 4.5% on Monday, in line with estimates from all but one of 11 economists in a Bloomberg survey.
Bloomberg
25-06-2025
- Business
- Bloomberg
Israel Campaign Against Iran Cost 1% of GDP, Yaron Says
Israel's campaign against the Iran nuclear threat cost the government about 1% of GDP, Bank of Israel Governor Amir Yaron says in an interview with Bloomberg's Lisa Abramowicz. Yaron says markets show that Israel's geopolitical risk has been significantly reduced and lawmakers may need to increase spending in the 2025 budget. (Source: Bloomberg)
Zawya
10-06-2025
- Business
- Zawya
Mideast factors to watch on June 10
Here are some factors that may affect Middle East stock markets on Tuesday. Reuters has not verified the press reports and does not vouch for their accuracy. INTERNATIONAL/REGIONAL * GLOBAL MARKETS-Stocks rise, dollar tentative ahead of US-China talks outcome * Oil up as market watches US-China trade talks * PRECIOUS-Gold falls as traders watch US-China trade talks in London * MIDEAST STOCKS-UAE shares end higher as outcome of US-China trade talks awaited * OPEC oil output rises in May but compensation cuts limit hike, Reuters survey finds * Iran to present counter-proposal to US, Trump says talks to resume UNITED ARAB EMIRATES * Etihad And Ethiopian Airlines Start Strategic Codeshare Partnership * Emirati businessman Khalaf Al Habtoor to visit Syria to explore investment opportunities, group says * Emirates NBD Partners With Siemens To Boost Financing For Green Infra Projects SAUDI ARABIA * Saudi crude oil supply to China to dip in July, sources say * Saudi Arabia's first-quarter GDP grows by 3.4%, beating flash estimates ISRAEL * Bank of Israel MPC voted 5-0 to hold rates over inflation concerns * UN says most flour delivered in Gaza looted or taken by starving people * Italy and Israeli Paragon part ways after spyware affair IRAN
Reuters
09-06-2025
- Business
- Reuters
Bank of Israel MPC voted 5-0 to hold rates over inflation concerns
JERUSALEM, June 9 (Reuters) - All five members of the Bank of Israel's Monetary Policy Committee voted to keep the benchmark interest rate unchanged at 4.5% on May 26, according to minutes of the meeting issued by the central bank on Monday, citing worries over inflation. Due to Israel's war against Hamas militants in Gaza, the committee was focusing on stabilizing the markets and reducing uncertainty, alongside price stability and supporting economic activity, it said in a statement. Discussions centred on economic activity, which continued to recover moderately, it said, against a background of high domestic and global uncertainty. "The interest rate path will be determined in accordance with the convergence of inflation to its target, continued stability in the financial markets, economic activity, and fiscal policy," the Bank of Israel said. The central said that Ori Heffetz, who joined the MPC on May 25, decided not to participate in the voting. The committee will return to a full six members beginning with the July 7 policy meeting. A main concern for policymakers was a rise in the annual inflation rate to 3.6% in April, staying above its 1-3% target, although it acknowledged much of the gain was due to the impact of flights abroad. Still, MPC members expect inflation to take longer to move back within its target. "In the committee's assessment, there are several risks for a possible acceleration of inflation or for its not entering the target range — the geopolitical developments and their impacts on economic activity, supply constraints, a deterioration in global terms of trade, and shekel volatility," the minutes said. The labour market, it added, remained tight but the most recent data showed some moderation. On May 27, Bank of Israel Governor Amir Yaron told Reuters that monetary policy needed to remain "cautious" given the uncertain geopolitical situation and near-term inflation environment, with policymakers ready to delay any rate cuts until inflation eased. "If we don't see some of those (inflationary) corrections, it might take a little bit longer (to lower rates). And if it does take longer, we will stay restrictive for longer," he said.
Asharq Al-Awsat
05-06-2025
- Business
- Asharq Al-Awsat
Israeli Finance Minister Says Banks Should Not Obey EU Sanctions on Settlers
Israel's Finance Minister Bezalel Smotrich on Thursday condemned the country's banks that have refused to provide services to Israeli settlers sanctioned by the European Union and warned they may have to pay compensation to them. The EU last year imposed sanctions on five Israeli settlers for violence against Palestinians and Smotrich said there were reports of sanctions being considered against other settlers. But in a letter to the banking supervisor, he said Israeli banks should not follow a "zero risk" policy since it leads to the abandonment of Israeli clients "under the guise of compliance with foreign sanctions." In a statement quoting his letter to the regulator, Smotrich called on banks to use their legal, economic, and international strength to fight "unjust sanctions", Reuters reported. "The banks' enormous profits enable them to take measured risks on behalf of their clients — especially when it comes to a national moral injustice," Smotrich, who leads the far-right Religious Zionism party, said. Should banks continue to comply with sanctions and harm clients, Smotrich said he intended to promote immediate legislation that would require banks to pay substantial compensation to affected customers. He also intends to require the Bank of Israel itself to offer banking services to citizens targeted by sanctions. Responding to the letter, the Bank of Israel said that while banks must comply with international sanctions to avoid an array of risks, a draft directive it published on Thursday aimed to ensure appropriate banking services were available for the affected customers. "Circumventing foreign sanctions regimes through the Israeli banking system exposes banking corporations to multiple risks, including compliance risks, anti-money laundering and counter-terror financing risks, legal risks, and reputational risks," the central bank said. But it said it has taken steps to comply with sanctions "without banks resorting to blanket refusals to serve such customers." While the sanctions in question concern Israeli settlers, the EU is reviewing its broad pact governing its political and economic ties with Israel in the face of mounting international pressure on Israel amid complaints about the lack of humanitarian aid reaching Gaza in the wake of the war triggered by Hamas' Oct. 7, 2023 attack.
