Peakot Investment House assesses that the Bank of Israel will cut the interest rate twice over the coming year, but will not rush beyond that. The firm forecasts the July CPI will rise 0.2% and annual inflation will fall to 1.5%, bottoming out before rising again, according to a report by N12.
Peakot Investment House published its latest economic forecast Monday, projecting that the Bank of Israel will cut the benchmark interest rate twice more in the coming year. The firm expects the July consumer price index to rise 0.2% and annual inflation to fall to 1.5%, bottoming out before rising again. Peakot said it does not expect the central bank to accelerate cuts beyond that pace.
The forecast comes amid a period of declining inflation. As The Zioneer has reported, annual inflation fell to 1.6% in July, the lowest in over five years, strengthening the case for further rate cuts. The Bank of Israel has already reduced the rate to 3.5% in two cuts earlier this year.
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Source and signal
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