Markets will follow the fiscal approval process closely

ISRAEL - Report 04 Nov 2024 by Jonathan Katz

1. The 4% deficit target has been approved by the cabinet, but the full implementation of adjustments appears unlikely.

2. Optimism regarding a decline in hostilities and a possible ceasefire has supported the long end of the curve, but much will depend on fiscal credibility.

3. Recent economic indicators have been on the soft side, a trend that is likely to continue into the 4th quarter due to the escalation in the North.

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