Israel's real interest rate highest in the West
Market experts talk to "Globes" about the constraints on the Bank of Israel, and whether its interest rate should, and could, fall.
Assessment
Israel's real interest rate now leads the West, a position that strains borrowers and risks slowing economic activity. The Bank of Israel faces a tightrope: cutting rates could fuel inflation or weaken the shekel, while holding them may stifle growth. Watch for upcoming inflation data and the central bank's next policy decision to gauge whether a pivot is possible.