The BoI stressed demand concerns rather than declining supply constraints

ISRAEL - Report 13 Jan 2025 by Jonathan Katz

1. A cautious monetary stance will most likely postpone easing until end-May.

2. The BoI dilemma centers around the concern regarding a post-war consumption surge, a concern we think is exaggerated.

3. Business confidence improved in December due to the ceasefire, while consumers remain pessimistic.

4. Israeli bond yields remained stable yesterday despite Friday’s jump in US yields, due to optimism regarding a ceasefire with Hamas.

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