Midi Shafrir, chief strategist of financial markets at Bank Hapoalim, said the June CPI showed a sharp drop in inflation and estimated that July will see a further decline to around 1.5%. According to N12, Shafrir said this trend makes a further rate cut by the Bank of Israel at its early September meeting plausible, with a 50% probability assigned.
Midi Shafrir, chief strategist of financial markets at Bank Hapoalim, commented on the June Consumer Price Index data published earlier today, saying inflation fell sharply in June and is expected to continue declining to around 1.5% in July. According to N12, Shafrir said the trajectory opens the door to a further rate cut by the Bank of Israel at its early September meeting, and he assigns a 50% probability to such a move.
This assessment follows the release of the June CPI data, which showed a significant cooling in price pressures. Finance Minister Bezalel Smotrich also commented on the data earlier today, calling for a rate cut. The Bank of Israel's next rate decision is scheduled for early September. The strategist's view aligns with the central bank's target range of 1-3% annual inflation, as the current trajectory remains within that band.
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Source and signal
- Internal intake